If a seller of a high-quality good cannot prove the quality of that good:
A. buyers will not be willing to pay the amount for which they value a high-quality good.
B. buyers will only be willing to pay the amount for which they value a low-quality good.
C. the good will never be offered for sale.
D. the good will trade at its equilibrium price.
Answer: A
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Refer to the table above. If there is a sixth unit that Jenny consumes, and the marginal benefit derived from that unit is -1, the total benefit derived when the sixth unit has been consumed is:
A) $0. B) $3. C) $29. D) $39.
Economists apply the term "Great Inflation" to which decade?
A) 1930s B) 1940s C) 1950s D) 1960s E) 1970s
Industries with high barriers to entry
a. Pushes profits to normal returns b. increases the likelihood of firms entering the industry c. help firms sustain profits d. increases the number of competitors
In order to have a meaningful measure of marginal utility, we must define the time period during which consumption is occurring
a. True b. False Indicate whether the statement is true or false