How the procedures help toyota deal with adverse selection, Microeconomics

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How the procedures help toyota deal with adverse selection

Problem

Toyota regularly takes its own cars in trade for new models. It then subjects them to a rigorous inspection process, fixing defects as it goes, and offers them for sale with an extended warranty. Explain how these procedures help Toyota deal with the adverse selection problem.

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Microeconomics: How the procedures help toyota deal with adverse selection

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