II. True or False 1, Warranty can serve as a signaling device of a productliability, because consumers take more care about the product provided by reliable firm. 2, When using Hypothetical monopolist test to define the relevant market for a food delivery platform, it is important to do test not only on a small increase in the food delivery fee, but also the increasing comission charged on the restaurant side. 3, A firm with trusted brand has no incentive to cheat consumers because the fly-by-night profit of cheating is not attractive compared to the long run reputation premium. 4, After the milk crisis of 2008, despite the effort of some dairy firms to improve food safety, consumers are still skeptical for the domestic dairy product because their belief on food safety is based on the whole industry's past, instead of the individual firm's past.
II. True or False 1, Warranty can serve as a signaling device of a productliability, because consumers take more care about the product provided by reliable firm. 2, When using Hypothetical monopolist test to define the relevant market for a food delivery platform, it is important to do test not only on a small increase in the food delivery fee, but also the increasing comission charged on the restaurant side. 3, A firm with trusted brand has no incentive to cheat consumers because the fly-by-night profit of cheating is not attractive compared to the long run reputation premium. 4, After the milk crisis of 2008, despite the effort of some dairy firms to improve food safety, consumers are still skeptical for the domestic dairy product because their belief on food safety is based on the whole industry's past, instead of the individual firm's past.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:II.
True or False
1, Warranty can serve as a signaling device of a productliability, because consumers take more
care about the product provided by reliable firm.
2. When using Hypothetical monopolist test to define the relevant market for a food delivery
platform, it is important to do test not only on a small increase in the food delivery fee, but also
the increasing comission charged on the restaurant side.
3, A firm with trusted brand has no incentive to cheat consumers because the fly-by-night profit
of cheating is not attractive compared to the long run reputation premium.
4. After the milk crisis of 2008, despite the effort of some dairy firms to improve food safety,
consumers are still skeptical for the domestic dairy product because their belief on food safety
is based on the whole industry's past, instead of the individual firm's past.
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