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That Most Used Cars Are Sold by Intermediaries (I

Question 2

Multiple Choice

That most used cars are sold by intermediaries (i.e.,used car dealers) provides evidence that these intermediaries ________.


A) have solved the moral hazard problem created by the consumers of used cars
B) are not able to prevent others from free-riding off the information that they provide
C) help solve the adverse selection problem
D) Only sell "lemons"

Correct Answer:

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