With asymmetric information, firms might be reluctant to improve the quality of their products because
A) it costs them more to produce the better quality product.
B) they are not able to completely capture the benefits of the improvement.
C) consumers do not value the better product.
D) consumers are better informed about the product and value the new product less.
B
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For a good to be nonrival, then
A) one person's consumption of that good does not decrease another person's consumption of that good. B) a person cannot be prevented from consuming that good even if he or she did not pay for it. C) a person is willing to pay any price to ensure that the product is available. D) a person is not willing to pay for the good because even without paying for it, the person can consume the good anyway.
In Bangladesh one person can produce 330 pounds of rice or 110 shirts in one year. In Singapore one person can produce 400 pounds of rice or 200 shirts in one year. Which of the following statements is true? a. Singapore has a comparative advantage in the production of rice
b. Singapore has both an absolute and comparative advantage in the production of rice. c. Bangladesh has a comparative advantage in the production of rice. d. Bangladesh has an absolute advantage in the production of rice.