Which Statement Regarding a Warranty Is NOT True

question 165

Multiple Choice

Which statement regarding a warranty is NOT true?

• A)It is a form of consumer insurance.
• B)Consumers may buy one,even if the cost of the warranty is greater than the expected future claim paid by the manufacturer.
• C)It decreases the consumer's expected utility from an item.
• D)It signals to consumers that the goods are of high quality.

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