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Author Question: Which of the following is a possible solution to the adverse selection problem? a. Screening b. ... (Read 87 times)

SO00

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on: Jul 1, 2018
Which of the following is a possible solution to the adverse selection problem?
 a. Screening
 b. Signaling
 c. All of the above
 d. None of the above

Question 2

A consumer values a car at 30,00 . and a producer values the same car at 20,000 . If the transaction is completed at 24,000 . the transaction will generate:
 a. No surplus
  b. 4,00 . worth of seller surplus and unknown amount of buyer surplus
  c. 6,00 . worth of buyer surplus and 4,00 . of seller surplus
  d. 6,00 . worth of buyer surplus and unknown amount of seller surplus


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brittiany.barnes

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Reply #1 on: Jul 1, 2018
Answer to Question 1

c

Answer to Question 2

c


SO00

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Reply #2 on: Jul 1, 2018
Thank you


brittiany.barnes

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Reply #3 on: Jul 1, 2018
No problemo


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