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    Exam 20: Uncertainty and Information
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    Used Car Buyers Believe a Car Is Good Quality When
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Used Car Buyers Believe a Car Is Good Quality When

Question 48

Question 48

Multiple Choice

Used car buyers believe a car is good quality when the seller signals the car's quality by offering a warranty because


A) car sellers would never lie.
B) car buyers are gullible.
C) the signal cannot be false.
D) a false signal can be costly to the seller.

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