In Solved Problem 19.2, show that, if all the other firms were producing a high-quality wallet, it would pay a firm to start producing a low-quality wallet.

Data From Solved Problem 19.2:-

It costs \(\$ 10\) to produce a low-quality wallet and \(\$ 20\) to produce a high-quality wallet. Consumers cannot distinguish between the products before purchase, they do not make repeat purchases, and they value the wallets at the cost of production. The five firms in the market produce 100 wallets each. Each firm produces only high-quality or only low-quality wallets. Consumers pay the expected value of a wallet. Do any of the firms produce high-quality wallets?