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Saved HE Types of Cars Buyer's Valuation Seller's Valuation Good (50% probability) 5 , 000 4,500 Bad (50% probability) 3 , 000 2, 500 Now

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Saved HE Types of Cars Buyer's Valuation Seller's Valuation Good (50% probability) 5 , 000 4,500 Bad (50% probability) 3 , 000 2, 500 Now suppose that sellers value a good car at $4,500 and a bad car at $2,500, and quality is not observed by the buyers. What is the h risk-neutral buyers will offer for a used car if they recognize adverse selection? Multiple Choice $4,000 O $2,500 $3,000 $4,500

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