Which of the Following Are Potential Problems Faced by a Firm

question 21

Multiple Choice

Which of the following are potential problems faced by a firm that wants to provide warranties for its lawnmowers? (Select all that apply.)

• A) a moral hazard problem might arise, in that homeowners may be less careful with the mower, since they can always return it if it breaks.
• B) the warranty may select for homeowners that don't have a lot of mowing to do, or have smooth lawns, because they won't have to pay as much for a warranty.
• C) the warranty will increase demand by assuring customers of the product's quality.
• D) the warranty will reduce demand because only makers of low-quality goods would need to reassure consumers in this way.

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Definitions:

Update Expression

In programming, an expression within a loop that modifies the loop's controlling variable to progress towards the loop's termination condition.

For Loop

A programming structure that repeats a block of code a specified number of times or until a particular condition is met.

Break Statement

A control statement used to terminate the loop or switch statement in which it appears and transfer control to the following statement.

Structure

A concept in various programming languages that allows the grouping of variables under one name for easier management of data.