Under Which of the Following Situations Would a Seller Prefer

Multiple Choice

Under which of the following situations would a seller prefer to incur the cost of improving the product quality?

A) If the increase in buyer's valuation for the improved product is higher than the cost of improving it.
B) If the increase in the seller's opportunity cost of improving the product is higher than the price of the product.
C) If the product improvement lowers the producer surplus.
D) If the product improvement allows the seller to a break even.