Suppose that sellers value a good car at 10500 and a bad, Ask an Expert

Economics

Suppose that sellers value a good car at $10,500 and a bad car at $5,500, and quality is not observed by the buyers. What is the highest price that risk-neutral buyers will offer for a used car if they ignore adverse selection when 60% of the cars are good?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91858241

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