A seller's signal about product quality is useful to potential customers when it
A)makes it more difficult for the customer to learn about the products of other producers.
B)reduces the profit margin so that customers don't feel exploited.
C)gives customers verification about things they already know.
D)helps them differentiate between high- and low-quality versions of the product.

Question

Quizplus · Accepted Answer

A seller's signal about product quality is useful to potential customers when it helps them differentiate between high- and low-quality versions of the product. This allows customers to make informed decisions and avoid purchasing low-quality products, which can save them both time and money in the long run.

A Seller's Signal About Product Quality Is Useful to Potential