Which of the following is NOT a likely market solution to the lemons problem?

Question

Quizplus · Accepted Answer

Average cost pricing is not a likely market solution to the lemons problem because it does not differentiate between high-quality and low-quality products. It may not provide enough incentive for high-quality products to enter the market and may result in consumers paying more for low-quality products. The other options (product warranty, industry standard, and product certification) are all ways to signal the quality of a product to potential buyers and mitigate the lemons problem.

Which of the Following Is NOT a Likely Market Solution