In the market for used cars,car owners have abundant personal experience with the important characteristics of the vehicle that they are selling.However,a prospective buyer can only guess the characteristics based on each car's appearance.Which of the following problems arises because of this information mismatch?
A) the principal-agent problem
B) the problem of the winner's curse
C) the problem of adverse selection
D) the problem of common resources
E) the problem of unbounded rationality
Correct Answer:
Verified
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A)a
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