If All Consumers Are Uninformed About the Quality of a Product

question 70

Multiple Choice

If all consumers are uninformed about the quality of a product

• A) firms can increase product 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:

NFC

Near Field Communication, a set of communication protocols that enable two electronic devices, one of which is usually a portable device such as a smartphone, to establish communication by bringing them within 4 cm of each other.

VPN

A Virtual Private Network is a technology that establishes a secure and encrypted connection across a less secure network, like the internet.

Open Source

Software with source code that can be inspected, modified, and enhanced by anyone, promoting collaborative software development.