Question: Firms are better off using rebates rather than just lowering the price of a good because _____. Group of answer choices lowering the price is

Firms are better off using rebates rather than just lowering the price of a good because _____.

Group of answer choices

lowering the price is inefficient and creates additional deadweight loss

customers overestimate the value of the rebate and so buy more of the good, making profits higher than if they just lowered the price

people view the firm in a positive light because now poorer people will be able to afford their good

only those who place a low value on their time or are price sensitive actually redeem the rebate, making profits higher than if they just lowered the price

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