A reputation must involve investments in sunk assets because:
A)this eliminates profits without incurring entry.
B)sunk costs still encourage some cheating, but not much.
C)avoidable cost investments will not increase the AC curve.
D)consumers can recognize the investment.

Question

Quizplus · Accepted Answer

The Answer of A reputation must involve investments in sunk assets because:
A)this eliminates profits without incurring entry.
B)sunk costs still encourage some cheating, but not much.
C)avoidable cost investments will not increase the AC curve.
D)consumers can recognize the investment.

A Reputation Must Involve Investments in Sunk Assets Because