Which of the following is a means of eliminating the undesirable effects of adverse selection?

Question

Quizplus · Accepted Answer

A long-term relationship allows for trust to develop between the parties, reducing the risk of adverse selection. Writing a contract to guarantee the quality helps to ensure that the buyer receives the expected level of quality, reducing the risk of adverse selection. Using both options together increases the likelihood of eliminating the undesirable effects of adverse selection.

Which of the Following Is a Means of Eliminating the Undesirable