Consumer capital goods that last longer typically sell for higher prices because
A)consumers' reservation prices are higher
B)asymmetric information leads consumers to believe they are better
C)they have higher production costs
D)they provide consumers with greater utility

Question

Quizplus · Accepted Answer

Consumers are willing to pay more for capital goods that last longer because they provide greater utility over a longer period of time.

Consumer Capital Goods That Last Longer Typically Sell for Higher