JT Smiths company Gamemaker sells gambling equipment to gami

J.T. Smith\'s company, Gamemaker, sells gambling equipment to gaming service companies. Since the quality of the equipment is difficult to monitor and gamblers are often the source of machine failure, Smith could cheat on the level of machine quality. However, Smith has a strong quality assurance program. A primary reason for that may be: Question 8 options: cost containment. the asymmetric information Smith holds on quality. company reputation. the need for reinforcement

Solution

correct option is c i.e Smith could cheat on the level of machine quality. However, Smith has a strong quality assurance program. A primary reason for that may be

company reputation