A possible market solution that a reputable firm can engage in when faced with the lemons problem is
A) to offer a warranty.
B) to engage in externalities.
C) to create asymmetric information.
D) to use average cost pricing.
Answer: A
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Some pet owners are using an "invisible fence" to keep their animals from straying. Every time the animal steps over the edge of the property, it gets a mild shock. A social scientist would call the shock
A) a bribe. B) a reward. C) a disincentive. D) a normative incentive.
Barter requires a double coincidence of wants. This means that:
a. at least two traders must demand a commodity. b. any two traders involved in a transaction must have money. c. each trader must demand at least two commodities. d. either of the two traders involved in a transaction must have money. e. when two traders are involved in a transaction each trader must want what the other has to offer.
Each country in NAFTA sets its own tariffs to the rest of the world.
a. true b. false
In a small town of 100 people, there are 10 children under 16, 10 retired people, 60 people with full-time jobs, 3 people with part-time jobs, 3 full-time students over 16, and 4 full-time homemakers. The remaining people did not have jobs, but wanted them. What is the participation rate in this town?
A. 87.5 percent B. 72.0 percent C. 81.1 percent D. 63.0 percent