1.

Some rms sell the same product under two brand names at different pn'ces. For example, although the Chevy Tahoe and the GMC Yukon are virtually twins. General Motors sold the 2018 Yukon for $1,600 more than the 2013 Tahoe. Give an asymmetric information explanation as to why the rm might use pairs of brand names and why one product might sell for more than the other. A rm might use a pair of brand names (instead of one} to sell the product for more under one of the brand names because 0 A. it is costly to determine whether two brands are the same good. 0 B. consumers have more information about quality than the rm. O C. consumers and the rm have an equal amount of information about the brands. O D. consumers believe the same good is sold under two brand names. 6) E. consumers are homogeneous and are not price sensitive.