Market signals are 0 A, only strong if obtaining the signal is more costly for i
ID: 1113452 • Letter: M
Question
Market signals are 0 A, only strong if obtaining the signal is more costly for individuals with valued traits than for those with non-valued O B. actions taken by buyers and sellers to communicate quality in the presence of perfect information. traits. C. used to distinguish between high and low quality and help correct the adverse selection problem. used to differentiate those who will drive equally carefully whether or not they have auto insurance from those who drive less carefully when they have insurance. D.Explanation / Answer
Ans is C
Market signals are used to distinguish between high and low quality and which can be used in correcting adverse selection problem which is caused because one partt has more knowledge compared to other.