If All Consumers Are Uninformed About the Quality of a Product

question 65

Multiple Choice

If all consumers are uninformed about the quality of a product

• A)firms can increase profit by selling the same product under a different name at a different price.
• B)firms will not be able to price discriminate.
• C)firms will price discriminate.
• D)firms will increase profits by charging different prices for the same product.

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Definitions:

Theory

A systematic set of ideas intended to explain facts or phenomena, often based on principles independent of the things to be explained.

Reciprocal Determinism

Bandura’s concept of a mutual influential relationship among behavior, cognitive factors, and environment.

Bandura

Albert Bandura, a psychologist known for his work on social learning theory and the concept of self-efficacy.

Feelings Of Inferiority

Emotional states characterized by a lack of self-worth or a sense that one is lesser than others, often examining personal or social standards.