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Claudia Went to a Department Store to Buy a Few

Question 7

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Claudia went to a department store to buy a few things for her new house.She found that several items in the store were on discount and decided to make the most of the deals offered.However,when she started using the things that she bought on discount,she realized that many of them were defective.This happened because of the presence of ________.


A) positive externalities
B) negative externalities
C) asymmetric information
D) the moral hazard problem

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