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JTSmith's Company,Gamemaker,sells Gambling Equipment to Gaming Service Companies

Question 14

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J.T.Smith's company,Gamemaker,sells gambling equipment to gaming service companies.Since the quality of the equipment is difficult to monitor and gamblers are often the source of machine failure,Smith could cheat on the level of machine quality.However,Smith has a strong quality assurance program.A primary reason for that may be:


A) cost containment.
B) company reputation.
C) the need for reinforcement.
D) the asymmetric information Smith holds on quality.

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