Multiple Choice
Which of the following is NOT a solution to adverse selection when buyers have private information?
A) The government can increase information, offer subsidies, enforce mandates, or provide insurance.
B) Sellers can offer different contracts so that buyers separate themselves.
C) Sellers can use information that is related to buyers' likely costs.
D) Sellers can simplify by charging a single average price.
Correct Answer:
Verified
Correct Answer:
Verified
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