suppose that you can produce high-quality beef at
Suppose that you can produce high-quality beef at $3 per pound and sell it for $8 per pound. Low-quality beef costs $1 to produce but only sells for $4 per pound. If quality is unobservable, why is only low-quality beef going to be produced?
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x4 - 25there is no greatest common factor here though notice that it is the difference of two perfect squaresx4 - 25 x2 2 - 52thus we can
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suppose that you can produce high-quality beef at 3 per pound and sell it for 8 per pound low-quality beef costs 1 to produce but only sells for 4
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