What is the correct answer?


Used cars are sold in:

A. Perfectly competitive international market

B. Perfectly competitive national market

C. Imperfect international market

D. Imperfect local market

Correct Answer :

D. Imperfect local market

The market for used cars is imperfect because buyers do not have perfect information about product quality. Mostly they can not be sold in national market b/c used cars are also relatively costly to transport.}

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