Which of the Following Is a Possible Market Solution to the Lemons

Multiple Choice

Which of the following is a possible market solution to the lemons problem?

A) Producers might offer product guarantees and warranties.
B) Producers might be required to meet certain legal standards to obtain licenses granting the right to sell their products.
C) Government agencies might be charged with directly overseeing production and distribution of certain products.
D) Liability laws might be established to ensure that firms selling certain products must face penalties in the event the products function poorly.