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Business, 21.04.2020 01:22 squawk1738
Consumers know that some fraction x of all new cars produced and sold in the market are defective. The defective ones cannot be identified except by those who own them. Cars do not depreciate with use. Consumers are risk-neutral and value nondefective cars at $11,000 each. New cars sell for $7,000 and used ones for $6,000. What is the fraction x?
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Consumers know that some fraction x of all new cars produced and sold in the market are defective. T...
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