Regulatory agencies engage in all of the following activities except . a. controlling entry into the regulated industries b. overseeing the quality of service provided by the firms c. setting federal and state income tax rates on regulated firms d. setting prices that consumers will pay e. none of the above

Many potential buyers value high-quality used cars at the full-information market price of € p1 and lemons at € p2. a limited number of potential sellers value high-quality cars at € v1 ≤ p1 and lemons at € v2 ≤ p2. everyone is risk neutral. the share of lemons among all the used cars that might be potentially sold is € θ . suppose that the buyers incur a transaction cost of $200 to purchase a car. this transaction cost is the value of their time to find a car. what is the equilibrium? is it possible that no cars are sold