Business, 25.10.2019 23:43 sarn8899

1. suppose that there are two types of houses for sale: those with solid foundations and those with cracked foundations. in all other respects, the two types of houses are identical. houses with solid foundations are worth $200,000, while those with cracked foundations are worth $200,000 minus the $20,000 to fix the crack, or $180,000. sellers know which type of house they have, but buyers cannot detect whether the foundation has a crack. suppose that 80 percent of the houses for sale have a solid foundation and 20 percent of the houses for sale have a cracked foundation. if buyers are risk-neutral and know the that 80 percent of the houses for sale have a solid foundation while 20 percent have a cracked foundation, then the owners of houses with a solid foundation will find that:

a. potential buyers are offering more than $200,000.
b. potential buyers are offering $200,000.
c. potential buyers are offering $180,000.
d. it is not worthwhile to sell their houses.

Answers: 3

Show answers

Another question on Business

Business, 22.06.2019 23:00

Draw a flowchart for a process of interest to you, such as a quick oil-change service, a factory process you might have worked in, ordering a pizza, renting a car or truck, buying products on the internet, or applying for an automobile loan. identify the points where something (people, information) waits for service or is held in work-in-process inventory, the estimated time to accomplish each activity in the process, and the total flow time. evaluate how well the process worked and what might be done to improve it.

Answers: 2

Answer

Business, 23.06.2019 22:00

How do public goods limit a free market economy? a. they allow consumers to make only occasional economic decisions. b. they allow government to make some economic decisions. c. they allow consumers to make all of the economic decisions. d. they do not allow government to make any economic decisions.

Answers: 1

Answer

Business, 23.06.2019 22:50

Recent studies have shown that 20% of americans fit the medical definition of obese. a random sample of 50 americans is selected and the number of obese in the sample is determined. what is the sampling distribution of the sample proportion latex: \hat p p ^ ?

Answers: 1

Answer

Business, 24.06.2019 00:30

What is the name of the central bank of the united states

Answers: 1

Answer

You know the right answer?

1. suppose that there are two types of houses for sale: those with solid foundations and those with...

Questions