Which of the following statements about the static vertical product differentiation model is incorrect? A. The firms decide on prices. B. If a consumer consumes one unit of the good and the two products have the same price, then the consumer chooses the high quality product. C. Each consumer's preferences depend on both the prices and the qualities of the goods D. One of the three other statements is wrong.

Which of the following statements about the static vertical product differentiation model is incorrect? A. The firms decide on prices. B. If a consumer consumes one unit of the good and the two products have the same price, then the consumer chooses the high quality product. C. Each consumer's preferences depend on both the prices and the qualities of the goods D. One of the three other statements is wrong.

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter7: Demand And Supply

Section: Chapter Questions

Problem 9AA

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Question

Which of the following statements about the static vertical product differentiation model is incorrect?

	A.	The firms decide on prices.
	B.	If a consumer consumes one unit of the good and the two products have the same price, then the consumer chooses the high quality product.
	C.	Each consumer's preferences depend on both the prices and the qualities of the goods
	D.	One of the three other statements is wrong.

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