Which of the Following Is NOT a Solution to Adverse

Multiple Choice

Which of the following is NOT a solution to adverse selection when buyers have private information?

A) Sellers can use information that is related to buyers' likely costs.
B) The penalty for being a high-cost customer is reduced.
C) The government can increase information, offer subsidies, enforce mandates, or provide insurance.
D) Sellers can offer different contracts so that buyers separate themselves.