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7. Suppose sellers can still tell if their console is Mint or Buggy, but buyers cannot. But now, if a buyer ends up with a
7. Suppose sellers can still tell if their console is Mint or Buggy, but buyers cannot. But now, if a buyer ends up with a Buggy console, it can be repaired-making it just as good as a Mint-at a cost of 100. If the secondary market operates competitively, how many of each type of console will sell? (hint: what does the ability to repair do to a buyer's WTP for a Buggy console?) (a) 0 Mints and 0 Buggys (b) 0 Mints and 50 Buggys (c) 50 Mints and 50 Buggys (d) 25 Mints and 25 Buggys
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