Which of the following statements is FALSE? Which of the following statements is FALSE? In order to maximise their profits, firms that compete by selling vertically differentiated products should all choose to produce products of the highest possible quality. In equilibrium a firm selling a lower quality product will sell to customers with a lower willingness-to-pay for quality. In equilibrium a firm selling a higher quality product will charge a higher price. Vertical product differentiation allows competing firms to earn positive producer surpluses