Abstract
This paper addresses quality-related aspects of consumer choice in undergraduate microeconomics and is divided into two sections. The first develops a conceptual framework underlying a linear demand structure for quality-differentiated goods. The second section incorporates a quality-differentiated demand structure into a conventional undergraduate critique of market efficiency in responding to consumer choice. A competitive market is shown to produce the optimal quality mix of a quality-differentiated good, while a monopolist is biased in favour of higher quality and a potentially suboptimal quality mix.
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