If quality-detection costs are very low,
a. lower quality products will tend to be outcompeted in the market, and the average quality will rise.
b. lower quality products will tend to be outcompeted in the market, but the average quality will fall.
c. higher quality products will tend to be outcompeted in the market, and the average quality will rise.
d. higher quality products will tend to be outcompeted in the market, and the average quality will fall.
a
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A firm's shutdown point is the quantity and price at which the firm's total revenue just equals its
A) total cost. B) total variable cost. C) total fixed cost. D) marginal cost.
A firm whose price is below its average cost:
a. is earning negative economic profit. b. is earning positive economic profit. c. is just breaking even. d. is earning zero economic profit. e. is earning zero accounting profit.