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When a Buyer Does Not Observe the Quality, Based on the Following

Question 105

Multiple Choice

When a buyer does not observe the quality, based on the following table, what is the highest price she will offer for a used car if she ignores adverse selection? When a buyer does not observe the quality, based on the following table, what is the highest price she will offer for a used car if she ignores adverse selection? A) $10,000 B) $5,000 C) $7,500 D) $7,000


A) $10,000
B) $5,000
C) $7,500
D) $7,000

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