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Akerlof points out that commercial dishonesty flourishes when quality is difficult to identify before purchase. Which of these statements is untrue ? Dishonest dealings tend
- Akerlof points out that commercial dishonesty flourishes when quality is difficult to identify before purchase. Which of these statements is untrue?
- Dishonest dealings tend to drive honest dealings out of the market when quality is difficult to evaluate.
- The cost of dishonest dealing is less than the direct losses to purchasers of poor goods because it must also include the losses from driving legitimate businesses out of existence.
- Underdeveloped countries must often devote substantial resources to export quality control in order to maintain acceptable perceived quality levels
- The costs of recognizing quality are higher the greater the variation of the quality distribution
- None, all statements are true
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