With asymmetric information, firms might be reluctant to improve ...

[NguyenJ]

With asymmetric information, firms might be reluctant to improve the quality of their products because
 
  A) it costs them more to produce the better quality product.
  B) they are not able to completely capture the benefits of the improvement.
  C) consumers do not value the better product.
  D) consumers are better informed about the product and value the new product less.

Question 2

A major advantage of the ________ production function is that it can be easily transformed into a linear function, and thus can be analyzed with the linear regression method.
 
  A) cubic
  B) power
  C) quadratic
  D) None of the above

[thall411]

Answer to Question 1

B

Answer to Question 2

B

[NguyenJ]

Excellent

[cam1229]

Gracias!