In the market for used cars, half of the cars are of good quality and would sell for $14,000, while half of the cars are of poor quality and would sell for $10,000. If a buyer possessed no information about the quality of the car she was considering, what would she be willing to pay for it?
A) $14,000
B) $10,000
C) $12,000
D) The buyer would choose not to buy because of the lack of information.
Correct Answer:
Verified
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