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Discuss the market for lemons model. In your answer you have to: (i) clearly outline the full model, (ii) define the variables and functions that

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Discuss the "market for lemons" model. In your answer you have to: (i) clearly outline the full model, (ii) define the variables and functions that you use and explain the decisions facing the parties involved, (iii ) derive and explain the results, (iii) specifically: show that a market failure may occur, (iv) show what determines whether a market failure occurs, (v) explain why it may occur

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