How Do Economists Explain the Value Firms and Consumers Place

question 150

Multiple Choice

How do economists explain the value firms and consumers place on brand names?

• A) Brand names show that firms can easily manipulate consumers.
• B) Brand names are a way firms can provide information about quality to consumers.
• C) Brand names are a way of turning private goods into public goods, increasing their value to both seller and buyer.
• D) Brand names are an example of adverse selection, by which producers advertise the options to consumers.

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