Two Bags of Chips Sit Side-By-Side in a Grocery Store

Two bags of chips sit side-by-side in a grocery store: Ruffles (a brand name) sells for $3.00,while Crunchy Chips (not a brand name) sells for $1.50.In a typical day the store sells some of each type of chips,which suggests that

A) no rational consumer would spend twice as much for Ruffles as he would for Crunchy Chips.
B) some consumers must perceive that Ruffles is a higher quality product.
C) Ruffles has no incentive to maintain the quality of its product just because of the Ruffles brand name.
D) None of the above is correct.

Correct Answer:

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