To reduce adverse selection,
A)firms can use screening.
B)both consumers and firms can use screening.
C)the government could eliminate all monopolies and oligopolies.
D)Both B and C.

Question

Quizplus · Accepted Answer

Adverse selection can be mitigated through screening mechanisms by both consumers and firms. Screening allows parties to better assess the risk or quality of the counterpart, thus reducing information asymmetry that leads to adverse selection. Eliminating monopolies and oligopolies does not directly address the issue of adverse selection.

To Reduce Adverse Selection