Martin is in the market for a new television set.He is deciding between two sets: one is rather expensive but offers a guarantee; the other has a lower price but offers no guarantee.Martin's decision to buy the more expensive set would indicate that:

Question

Quizplus · Accepted Answer

Martin's decision to buy the more expensive set suggests that he interpreted the guarantee as a signal of quality, indicating that he values the assurance that the television set will last. This is a rational decision, as the guarantee reduces the risk of having to replace the television prematurely.

Martin Is in the Market for a New Television Set