A seller's verbal assurances that a used car is a plum (high-quality car)
A) is not effective at reducing the problems associated with asymmetric information.
B) is an effective way for sellers to prove that the good they are selling is of high quality.
C) is a more efficient way to prove high quality than a money-back guarantee because it does not cost the seller any money to make the assurance.
D) provides the same protection against adverse selection than does a repair guarantee.
Correct Answer:
Verified
Q130: A seller who is offering a low-quality
Q131: Warranties reduce information asymmetry.
Q132: Which of the following is NOT an
Q133: Sellers of high-quality used goods are _
Q134: Recall the Application about federal quality standards
Q136: By which of the following methods could
Q137: Some states have laws that require that
Q138: Consumers can reduce their information disadvantage by
Q139: Repair guarantees are a sign the seller
Q140: Lemon laws that allow consumers to return
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents