Question

Bad firms

Answer 1

Answer:

The correct answer is b.

Explanation:

Options c and d don't make sense since there's only one option (bad firms). Firms operate under a for-profit logic, so it doesn't matter if they're good or bad, all firms have an incentive to make themselves look good as a good image means consumers and other firms will make business with them. But bad firms will slant the information they are required to transmit to the public, because they calculate that the cost of them giving deliberately misleading or wrong information is higher than not transmitting slanted information.