Multiple Choice
That most used cars are sold by intermediaries (i.e.,used car dealers) provides evidence that these intermediaries
A) have been afforded special government treatment, since used car dealers do not provide information that is valued by consumers of used cars.
B) are able to prevent potential competitors from free-riding off the information that they provide.
C) have failed to solve adverse selection problems in this market because "lemons" continue to be traded.
D) do all of the above.
Correct Answer:

Verified
Correct Answer:
Verified
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