Answer:
C. Yes. If repair rates are higher for planes that have been resold, this would be an indication of a lemons problem
Explanation:
Lemons problem is an issue of quality of product, asset, investment : due to asymetric information about the respective quality.
Asymetric Information is when one one party in transaction has more knowledge about the quality of product or asset, than the other party.
Second hand goods are an illustration of this case, as seller has more information about the real quality of good or asset than buyer.
Lemon's problem in single engines airplanes : can be analysed by concept of second hand goods 'asymetric information, lemons problem' it. If the 2nd hand resold planes require higher repairs, it indicates that the buyer had asymetric information about bad quality of planes ( the information which seller had), but realisation of bad quality later implies higher repairs.
John d. Rockefeller stands out among nineteenth-century business leaders because of his innovative organization called vertical integration.
<h3>What is vertical integration?</h3>
Vertical integration is a procedure that entails acquiring corporate operations in order to produce the same thing.
- When a business chooses vertical integration, they typically have control over some phases of product production and delivery.
- Vertical integration can also be defined as the union of businesses engaged in the same line of work but at various stages of production or distribution.
- For instance, because it involves many phases in its business, Amazon might be classified as one of the organizations with vertical integration.
- In addition to acting as a platform for buyers and sellers, Amazon also has its own distribution network and sells some of its own goods and services.
To learn more about vertical integration, visit:
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