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Consider a market for used computer printers, where buyers value good ones at $1,000 and bad ones at $760. Sellers value good ones at $910
Consider a market for used computer printers, where buyers value good ones at $1,000 and bad ones at $760. Sellers value good ones at $910 and bad printers at $690. Sellers can attach a warranty at cost of $20 per month for good ones and $45 for bad ones. What is the minimum number of month necessary in order for the seller of good printers to be able to signal her type?
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