ua.com/Stüdent/PlayerHomework.aspx... ECO 167-Summer 2018 gr Homework: Chapter 1
ID: 1157515 • Letter: U
Question
ua.com/Stüdent/PlayerHomework.aspx... ECO 167-Summer 2018 gr Homework: Chapter 15 Save Score: 0 of 6 pts 7 of 15 (7 complete)HW Score: 42%, X Text Problem 2.3 -Question Help * In a market in which there is vertical differentiation, we always see price differences among the products. In markets with horizontal differentiation, sometimes the products differ but prices are very much the same. Why does vertical differentiation naturally bring with it price differences? Without price differences between products with vertical differentiation, everyone will choose the better product. Thus O A. when the better product costs more to purchase. only some people will be willing ror to pay the higher price. Others will opt for the lower quality, less expensive alternative B. when the better product costs more to purchase, everyone will be willing to pay the higher price for the better quality the only way a product can survive in a competitive market in which another, better product is available, is by having a higher price to signal customers that the quality is better than it actually is. ne off don heir C. Wo O D. when the better product costs more to purchase, no one will be willing to pay the higher price, with everyone opting for the lower quality, less expensive alternative. ons /6320 Click to select your answer and then click Check Answer ? ed by All parts showing or anG ardless un Clear A Final Check consumers maExplanation / Answer
Solution-
Without price differences between products with vertical differentiation, everyone will choose the better product thus, When the better product costs more to purchase, only some people will be willing to pay the higher price. Others will opt for thelower quality, less expensive alternative.
The correct option is A. When the better product costs more to purchase, only some people will be willing to pay the higher price. Others will opt for thelower quality, less expensive alternative.
Reason-
Vertical differentiation refers to the differentiation of the product so that the output from each person's perspective is better than competing products.Product can be sustained in a competitive market, in which second, good production is available, with a lower price.
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