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There is so-called Lemon problem in used car market. Regarding it, write down the definition of adverse selection. Also to resolve it, we can use
There is so-called Lemon problem in used car market. Regarding it, write down the definition of adverse selection. Also to resolve it, we can use 3rd partys inspection. Lets assume we have the following 4 different value used cars. $20,000, $12,000, $6,000, $1,000. Please solve out corresponding inspection fees to separate themselves from each other.
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