Multiple Choice
If quality-detection costs are very low,
A) low quality products will tend to be withdrawn from the market, and the average quality will rise.
B) low quality products will tend to be withdrawn from the market, but the average quality will fall.
C) high quality products will tend to be withdrawn from the market, and the average quality will rise.
D) high quality products will tend to be withdrawn from the market, and the average quality will fall.
Correct Answer:

Verified
Correct Answer:
Verified
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