Imperfect knowledge about hazardous effects of a product will likely result in
A) insufficient resources devoted to producing a product.
B) consumers paying too high a price for a product.
C) underconsumption of a product.
D) the formation of trusts among firms.

Question

Quizplus · Accepted Answer

When consumers are not fully aware of the hazardous effects of a product, they may value it more than they should, leading to them paying a higher price than is warranted by the true utility or safety of the product.

Imperfect Knowledge About Hazardous Effects of a Product Will Likely