subject
Business, 28.11.2019 05:31 weitz3584

Caroline sees a classified ad from antonio offering a used dvd player for $30. on the opposite page, she sees a big color ad from a national electronics chain offering a new dvd player for $175. caroline values a dvd player at $220 as long as it works, regardless of whether it is new or used. for each of the scenarios listed, determine the principle illustrated by each person's reasoning. moral adverse scenario hazard selection suppose lorenzo, the seller of the lawn mower, knows the mower is in good condition he is only selling it because he has decided to replace his lawn with a new deck. he thinks about asking $45 and offering a guarantee he will replace the lawn mower with a new $250 lawn mower if it turns out not to work. then he thinks, "that's not a good idea! someone can just buy it, handle it carelessly, and, if it breaks, can pretend it didn't work and get a new lawn mower for $45-meanwhile, i'll be out $205! " suppose neha buys the new lawn mower from the national home improvement chain, thinking "someone would ask $30 for a used lawn mower only if it didn't work well." why is lorenzo unable to sell neha the lawn mower? check all that apply adverse selection can cause buyers to avoid purchasing high-quality goods because of uncertainty about their quality. moral hazard can prevent sellers from offering guarantees of quality, because they can't be sure that buyers won't try to take advantage of the guarantees by filing false claims.

ansver
Answers: 1

Other questions on the subject: Business

image
Business, 21.06.2019 22:30, ericlawton
Abusiness cycle reflects in economic activity, particularly real gdp. the stages of a business cycle
Answers: 2
image
Business, 22.06.2019 06:00, StephanieQueen2003
For 2018, rahal's auto parts estimates bad debt expense at 1% of credit sales. the company reported accounts receivable and an allowance for uncollectible accounts of $86,500 and $2,100, respectively, at december 31, 2017. during 2018, rahal's credit sales and collections were $404,000 and $408,000, respectively, and $2,340 in accounts receivable were written off. rahal's accounts receivable at december 31, 2018, are:
Answers: 2
image
Business, 22.06.2019 06:40, jordenv00
Self-interest achieve society’s economic goals because producers know which goods consumers want the most. as consumers and producers exercise their freedom to act in their own self-interest, markets will produce the desired goods at the lowest possible cost. consumers and producers both operate based on society’s economic goals. consumers know which goods can be produced at the lowest cost. there is a wide variety of desired goods and services in a market system because producers determine what to produce. consumers change their minds frequently. there is always a need to produce something new and improved. individual wants are diverse. what is produced is ultimately determined by consumers, because if the goods offered are not what consumers want, consumers will not buy them. producers, because they are driven by profits. producers, because they determine what to produce. consumers, because they participate in marketing surveys.
Answers: 2
image
Business, 22.06.2019 12:30, victorialeona81
Provide an example of open-ended credit account that caroline has. caroline blue's credit report worksheet.
Answers: 1
You know the right answer?
Caroline sees a classified ad from antonio offering a used dvd player for $30. on the opposite page,...

Questions in other subjects: