For much of its history, General Motors was characterized by having versions of the same car with different nameplates, e.g., Chevrolet vs. Cadillac. This business model has seemed less successful in recent years. What might explain this?
A) Consumers have more information concerning costs and quality.
B) Consumers have more information concerning costs but not quality.
C) Sellers have more information concerning costs but consumers have more information about quality.
D) Consumers have less information concerning costs and quality.
A
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If a seller can sell 5 units at $8 each but can sell 6 units only by lowering the price to $7 (and must sell all units at the same price), the marginal revenue from selling the 6th unit is
A) $42. B) $7.50. C) $7. D) $2. E) none of the above.
If technological breakthroughs in the computer and software industries cause large numbers of firms to consider investment projects they hadn't previously thought of,
A) the supply of loanable funds will shift rightward. B) the supply of loanable funds will shift leftward. C) the demand for loanable funds will shift rightward. D) the demand for loanable funds will shift leftward. E) an excess demand for loanable funds emerges and persists.