Which of the following are true pertaining to the problems of asymmetric information?
A. Sellers can deal with asymmetric information by sending buyers signals about the quality of the product.
B. If a seller has better information about quality than the buyer, then bad products tend to drive good products out of the market.
C. According to efficiency-wage theory, a wage lower than the competitive wage increases worker productivity by discouraging shirking.
D. Adverse selection arises because of asymmetric information in the insurance market.
E. Owners can avoid the principal-agent problem by designing contracts that give their agents incentives to perform better.
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