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    Exam 22: Asymmetric Information in Competitive Markets
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    In Equilibrium, Consumers Will Incur Costs to Signal Their Type
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In Equilibrium, Consumers Will Incur Costs to Signal Their Type

Question 11

Question 11

True/False

In equilibrium, consumers will incur costs to signal their type (in markets with adverse selection) only if this results in a price that is lower than the pooling equilibrium price.

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