If Quality-Detection Costs Are Very Low

question 203

Multiple Choice

If quality-detection costs are very low,

• A)​lower quality products will tend to be outcompeted in the market, and the average quality will rise.
• B)​lower quality products will tend to be outcompeted in the market, but the average quality will fall.
• C)​higher quality products will tend to be outcompeted in the market, and the average quality will rise.
• D)​higher quality products will tend to be outcompeted in the market, and the average quality will fall.

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Definitions:

Covalently Bonded Molecule

A molecule whose atoms are held together by covalent bonds, which involve the sharing of electron pairs between atoms.

Hydrogen

The first element on the periodic table, with the symbol H, known for being the lightest and most abundant chemical element in the universe.

Lewis Structure

A representation of the distribution of electrons in molecules, illustrating how the valence electrons are arranged among the atoms in the molecule.

Methane

A simple hydrocarbon with the formula CH4, it is the main component of natural gas and a potent greenhouse gas.