If Some Consumers Think That Two Detergents Have Differing Qualities

Multiple Choice

If some consumers think that two detergents have differing qualities, such as brand-name vs. private label detergents, wheres other consumers know that the detergents are identical, then the detergent producer can

A) reduce its costs.
B) engage in a special type of price discrimination.
C) avoid moral hazard.
D) None of the above.