Answer
In general, buyers trust brand names more because they say something about a product's quality.
Brand names also encourage sellers to maintain good quality, because having a good reputation is important in sales.
Work Step by Step
N/A
Principles of Microeconomics, 7th Edition
by Mankiw, N. Gregory
Published by
South-Western College
ISBN 10:
128516590X
ISBN 13:
978-1-28516-590-5
Chapter 16 - Part V - Monopolistic Competition - Questions for Review - Page 345: 7
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