=+on average for Harrys cars and only $7000 on average for Lews cars. Without more information, consumers

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=+on average for Harry’s cars and only $7000 on average for Lew’s cars.

Without more information, consumers do not know the quality of each dealership’s cars. In this case, they would figure that they have a 50–50 chance of ending up with a high-quality car and are thus willing to pay $8500 for a car.

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Microeconomics

ISBN: 9780134184241

9th Edition

Authors: Robert Pindyck, Daniel Rubinfeld

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Question Posted: Oct 28, 2024 02:00 AM

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=+on average for Harrys cars and only $7000 on average for Lews cars. Without more information, consumers

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Microeconomics

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