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If ABC Co. sells a better and cheaper mousetrap than XYZ Inc., buyers will ordinarily buy only from ABC - but only if the buyers
If ABC Co. sells a better and cheaper mousetrap than XYZ Inc., buyers will ordinarily buy only from ABC - but only if the buyers KNOW that ABC's mousetrap is better. What if buyers were unable to tell the quality? What market failure is present here? Name two ways in which the government/a governmental agency has tried to intervene to stop or lessen the effects of this failure. In your opinion is one of the ways better than the other? Why or why not
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