Asked by maysoon alharoon on Sep 24, 2024
Verified
Given that you observe nothing but the high price of the product,you are more likely to infer that
A) The product is low quality
B) The product is high quality
C) The product is the lowest quality possible
D) The product is defective
High Quality
The degree to which a product or service meets or exceeds customer expectations.
High Price
An amount that is considerably above the average or standard cost of an item or service.
- Analyze how market power and competition influence decisions related to pricing.
Verified Answer
YZ
Yuxin Zhengabout 12 hours ago
Final Answer :
B
Explanation :
A high price often indicates that a product is of high quality, as companies are able to charge more for well-made or exclusive products. Therefore, it is more likely that the product is of high quality if the only observation is that it has a high price.
Learning Objectives
- Analyze how market power and competition influence decisions related to pricing.