5. Toyota regularly takes its own cars in trade for new models. It then subjects them to...

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5. Toyota regularly takes its own cars in trade for new models. It then subjects them to a rigorous inspection process, fixing defects as it goes, and offers them for sale with an extended warranty. Explain how these procedures help Toyota deal with the adverse selection problem.

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Microeconomics

ISBN: 9780716759751

1st Edition

Authors: Austan Goolsbee, Steven Levitt, Chad Syverson

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