Is the refund policy a signal of product quality

Reference no: EM13696615

1. A publisher of financial management software offers full refunds to any dissatisfied purchaser. Is the refund policy a signal of product quality? Explain why, and how signaling works.

2. Some companies continue in business even though they are losing money. Are they making a mistake? Explain why.

3. Consider the effect of changes in fares on the quantity demanded of taxi services. Do you expect demand to be more elastic with respect to fare changes in the short run or in the long run? Explain why.

Reference no: EM13696615

Questions Cloud

Government mandates that firms supply a particular benefit : When the government mandates that firms supply a particular benefit, it is usually the case that . (We exclude the case that cost is less than valuation)

Many countries in the european union use the same currency : Many countries in the European Union use the same currency: Euro. Should the US, Canada and Mexico similarly use the same currency? What are the pros and cons of using the same currency if all three countries use it? Will the US benefit from such as ..

To maximize profit in the face of uncertainty : To maximize profit in the face of uncertainty, firms should produce the output where:

Negative slope of the aggregate demand curve results : The interest rate effect suggests that the negative slope of the aggregate demand curve results at least in part because changes in the price level affect:

Is the refund policy a signal of product quality : A publisher of financial management software offers full refunds to any dissatisfied purchaser. Is the refund policy a signal of product quality? Explain why, and how signaling works. Some companies continue in business even though they are losing mo..

Monopolist to continue earning economic profits : Which of the following conditions would most likely permit a monopolist to continue earning economic profits even in the long run?

What is the irr of the investment : Make a cash flow diagram or table showing yearly dollar values. What is the IRR of the investment (show all calculations) If companies’ discount rate is 12% would this be a good investment?

What is your conclusion : A sample of 59 account balances of a credit card company showed a sample mean balance of $1,150 and a sample standard deviation of $200. At a 2% level of significance, test to determine if the population mean balance is significantly different from $..

Nationalization of industries so pricing is at marginal cost : Why are government imposed "average cost pricing" and "nationalization of industries so pricing is at marginal cost" both second best outcomes to the competitive markets? P=MC=min ATC long run equilibrium?

User Account

All Pages