Extended warranties, Extended Warranties: Your product

Extended warranties

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Reference no: EM13994587

Extended Warranties: Your product fails about 2% of the time, on the avarage. Some customers purchase the extended warranty you offer in which you will replace the product if it fails. Would you want to price the extended warranty at 2% of the product price? Discuss both the moral and adverse selection issues.

Reference no: EM13994587

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