Consider a market for used computer printers, where buyers value good ones at $1,000 and bad ones at $760. Sellers value good ones at $910 and bad printers at $690. Sellers can attach a warranty at cost of $20 per month for good ones and $45 for bad ones. What is the minimum number of month necessary in order for the seller of good printers to be able to signal her type? Group of answer choices  5 6 9 11

Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter17: Making Decisions With Uncertainty
Section: Chapter Questions
Problem 10MC: You are considering entry into a market in which there is currently only one producer (incumbent)....
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Consider a market for used computer printers, where buyers value good ones at $1,000 and bad ones at $760. Sellers value good ones at $910 and bad printers at $690. Sellers can attach a warranty at cost of $20 per month for good ones and $45 for bad ones. What is the minimum number of month necessary in order for the seller of good printers to be able to signal her type? Group of answer choices

 5

6

9

11

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