Author Question: Which of the following is more likely to be able to command a higher price for its products a. A ... (Read 42 times)

Engineer · **on:** Jul 1, 2018

Which of the following is more likely to be able to command a higher price for its products
a. A specialty frozen yogurt producer, with high quality product
b. A mall kiosk selling costume jewelry
c. A specialty toy store that allows customers to self-design teddy bears
d. Both A&C

Question 2

Adverse selection in insurance requires that
a. potential customers face different levels of risk
b. potential customers facing more risk are no more interested in purchasing insurance
c. people are not risk averse
d. insurers can tell higher risk people from lower risk people