Statement 1: one strategy for creating value involves increasing product quality. This works as long as the customers willingness to pay rises by less than the cost per unit of the product.

Statement 2: Reducing consumer transactions costs is an effective way to increase short term profit. Often this is done by lobbying government to raise the price of substitute products.

Statement 3: If a company is providing a compensation package that is in equilibrium at the moment, then eliminating a significant fringe benefit will require them to make the package more generous somewhere else or they will have difficulty attracting and retaining qualified employees.

Statement 4: When there are no tax advantages to a fringe benefit, economists will never support including that benefit in a firms compensation package.

Are any of these statements true? which ones?