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karamvir19 karamvir19
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A year ago
Adverse Selection

Suppose you see a 2005 Ford Mustang advertised in the local newspaper for $9,500. If you could be sure that the car is reliable, you would be willing to pay $11,400 for the car. If you could be sure that the car is unreliable, you would be willing to pay $5,700 for it. What is the maximum probability of the car being unreliable at which you would purchase the car?
Please round your final answer to the nearest percent.

▸ 33%

▸ 67%

▸ 83%

▸ 17%
Textbook 
Macroeconomics

Macroeconomics


Edition: 3rd
Authors:
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dangoondangoon
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A year ago
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karamvir19 Author
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A year ago
You make an excellent tutor!
emilyas19
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Yesterday
Just got PERFECT on my quiz
amandamraz
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2 hours ago
Helped a lot
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