Sellers may choose not to sell in certain markets because:
A)it is possible to practice price discrimination against customers.
B)buyers are unable to perceive the high quality of their goods and are, therefore, less willing to pay for them.
C)they are able to impose negative externalities on third parties.
D)an above-average profit potential is projected.

Question

Sellers may choose not to sell in certain markets because:
A)​it is possible to practice price discrimination against customers.
B)​buyers are unable to perceive the high quality of their goods and are, therefore, less willing to pay for them.
C)​they are able to impose negative externalities on third parties.
D)​an above-average profit potential is projected.

Quizplus · Accepted Answer

Sellers may opt out of certain markets if buyers cannot recognize the high quality of their products, making them less inclined to pay a premium for them. This situation can lead to a market failure known as "adverse selection," where good quality goods are driven out of the market because they are undervalued.

Sellers May Choose Not to Sell in Certain Markets Because