from gathering add itionai tioal about cars r ie let benefit de e the cost of ga
ID: 1114306 • Letter: F
Question
from gathering add itionai tioal about cars r ie let benefit de e the cost of gathering information about cars is higher than the benefit that can be 31. If the quality-detection costs are very low, ucts will tend to be withdrawn from the market, and the average quality will improve ducts will tend to be withdrawn from the market, and the average quality will decline ducts will tend to be withdrawn from the market, and the average quality will impro ality products will tend to be withdrawn from the market, and the average quality will decli a. low-quality prod b. low-quality pro c high-quality pro d. high-qu e. the problem of adverse selection cannot be overcomeExplanation / Answer
Low quality products will tend to be withdrawn from the market, and the average quality will rise.
the above a is the answer
because of low costs, the quality tends to improve over time.
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