Because the presence of a warranty for a good is a signal that the good is of high quality,

Because the presence of a warranty for a good is a signal that the good is of high quality,



(a) consumers are willing and able to pay more for a good that carries a warranty.
(b) consumers are willing to buy goods if and only if the goods come with warranties.
(c) producers do not need to charge extra for warranties.
(d) producers must make warranties available on all goods.


Answer: a


Learn More :