User Account

All Pages

What type of asymmetric information problem is present here

Assignment Help Finance Basics
Reference no: EM131304326

At a used car lot, a nearly new car with only 2,000 miles on the odometer is selling for half the car's original price. The salesperson tells you that the car was "driven by a little old lady from Pasadena" who had it for two months and then decided that she "didn't like the color." The sales person assures you that the car is in great shape and has had no major problems. What type of asymmetric information problem is present here? How can you get around the problem?

Reference no: EM131304326

Questions Cloud

Describe three generic strategies-overall cost leadership : Briefly describe the three generic strategies-overall cost leadership, differentiation, and focus. Discuss how managers can create value for their firm through diversification efforts.
How are the currency pairs listed for the euro and yen : How are the currency pairs listed for the euro (EUR), yen (JPY), and pound (GBP) versus the dollar? What are the current exchange rates listed?
Are the trends you have identified sustainable : Analyze and evaluate the two most salient trends impacting the inpatient or outpatient setting. What are the positive and negative impacts of the trends you have identified? Are the trends you have identified sustainable?
What is the nature of the direction of the relationship : What is the difference between functional and dysfunctional conflict? Can conflict that starts off as functional become dysfunctional? Can dysfunctional conflict be changed to functional conflict?
What type of asymmetric information problem is present here : The sales person assures you that the car is in great shape and has had no major problems. What type of asymmetric information problem is present here? How can you get around the problem?
How you plan to use information from your career : Describe in 3-4 sentences how you plan to use information from HCA 340 in your career, regardless if you find yourself working in a health related field.
How should you view someone selling a used car : How should you view someone selling a used car? Why might you want to view someone selling a financial investment the same way?
What strategies can you implement to increase productivity : Additionally, your staff is wearing multiple hats; many working to register, bill, code, schedule and assist with back house operations. What strategies and tools can you implement to increase productivity, reallocate resources and boost employee ..
What are the consequences for the market for insurance : If insurance companies are correct in their suspicion, what are the consequences for the market for insurance?

Reviews

Write a Review

Finance Basics Questions & Answers

  Would this condition be satisfied if the number of waiting

The vice president of a bank wishes to provide banking services so that the probability of the number of waiting customers being greater than 8 is less than .07. Would this condition be satisfied if the number of waiting customers is a Poisson random..

  Which of the two companies he will buy

He is trying to decide which of the two companies he will buy. Tobacco Company of America's cost of capital is 10 percent.

  Define money and outline its major functions

a) Define Money and outline its major functions. b) Explain the various motives of holding money.

  What is the cash break-even quantity

A project has the following estimated data: price = $68 per unit; variable costs = $44 per unit; fixed costs = $18,000; required return = 10 percent; initial investment = $40,000; life = five years. Ignoring the effect of taxes, what is the accoun..

  What then is the cross rate between francs and pounds

7.5 Suppose that the exchange rate is .60 dllars per swiss franc. if the franc appreciates 10% against the dollar, how many francs would a dollar buy tomorrow?7.6 Suppose the exchange rate between U.S dollars and the Swiss franc is SFr1.6 = $1 and th..

  Consider how the inflation rate would affect the return

consider how the inflation rate would affect the return

  Calculate coefficient variation and select best investment

Based on the following information, calculate the coefficient of variation and select the best investment based on the risk/reward relationship.

  Actual money that could be made with the foreign

However, the opportunity cost in me tells me that the risk of loss of value is less than the actual money that could be made with the foreign investment. Would you agree? What steps could a company make to lessen their economic exposure?

  Define affirmative covenants negative covenants restrictive

Define the following and give an example of each:  a. Affirmative covenants b. Negative covenants c. Restrictive covenants

  How accountants in public accounting and consulting affected

Prepare a paper on the implementation of Section 404 of the Sarbanes-Oxley Act in 2002. Discuss how accountants within an organization are involved in helping their organizations comply with this section. Describe also how accountants in public ac..

  If an integer is randomly selected from all positive 2

if an integer is randomly selected from all positive 2 digit integers what is the probability that the chosen integer

  What amount of the payroll department costs

What amount of the payroll department costs will be allocated to the molding department?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd