1.Brands have been made illegal.People value high quality soda at $2/can and low quality soda at $1/can.High quality soda costs $1.75/can to make, while low quality soda costs $0.75/can to make.

a.What is the efficient outcome?

b.Assuming that consumers are willing to pay for soda based on the average quality in the market and that there are as many high and low quality sodas out there to start with, what is the equilibrium outcome in this market?