To avoid getting a "lemon" house,buyers hire inspectors because:
A)the marginal benefit of getting a "lemon" house exceeds the inspector's fee.
B)the marginal cost of getting a "lemon" house is lower than the inspector's fee.
C)the marginal cost of not getting a "lemon" house is less than the inspector's fee.
D)the marginal benefit of not getting a "lemon" house exceeds the inspector's fee.

Question

Quizplus · Accepted Answer

Buyers hire inspectors because the marginal benefit of not getting a "lemon" house, which may have hidden defects that are costly to repair or even make the house uninhabitable, exceeds the inspector's fee. By hiring an inspector, buyers can avoid potential future expenses that could be significantly higher than the cost of the inspection. Therefore, the best choice is D.

To Avoid Getting a "Lemon" House,buyers Hire Inspectors Because