For some products,quality is virtually impossible to determine prior to purchase.If sellers of such commodities are rational,they will cheat or engage in unethical behavior only when:
A)laws allow unethical behavior.
B)the expected gains are greater than the expected costs.
C)production exhibits positive externalities.
D)the expected gains are equal to the expected costs.

Question

Quizplus · Accepted Answer

If the expected gains from cheating or engaging in unethical behavior are greater than the expected costs, sellers may choose to do so even if it is unethical. This is because they are rational actors who seek to maximize their profits. While laws and positive externalities may play a role in promoting ethical behavior, ultimately, the decision to cheat or behave unethically is based on the calculation of expected gains and costs.

For Some Products,quality Is Virtually Impossible to Determine Prior to Purchase.If