Maria owns a used car lot. One common complaint she gets from customers is that they do not know what might be wrong with a car on the lot. In order to combat this problem and still make money, what can Maria do?
a. Make sure she does not mention any faults or defects a car may have.
b. Offer a voucher for a free mechanical inspection if an offer is made on a car.
c. Lower all of her prices to the price expected to be paid for a lemon.
d. Raise all of her prices to the price expected to be paid for a premium car.
b. Offer a voucher for a free mechanical inspection if an offer is made on a car.
You might also like to view...
Which of the following is likely to happen if the government of a country introduces a subsidy on job creation?
A) The labor demand curve shifts to the right. B) The labor supply curve shifts to the right. C) The labor supply curve shifts to the left. D) The labor demand curve shifts to the left.
Market supply is found by
A) horizontally summing each individual producer's average total cost curve. B) vertically summing the relevant part of each individual producer's marginal cost curve. C) horizontally summing the relevant part of each individual producer's marginal cost curve. D) vertically summing each individual producer's average total cost curve.
Private goods are excludable and nonrival in consumption
a. True b. False
Dumping occurs when a firm sells goods abroad at a price below their cost and below the price charged in their domestic market
Indicate whether the statement is true or false