单选题Charlie’s Chainsaw Company has reason to believe that one of its models of saw is defective. A recall of all of the saws would cost more than $5 million, and would probably result in a loss in market share over the next quarter because of bad publicity
题目
单选题
Charlie’s Chainsaw Company has reason to believe that one of its models of saw is defective. A recall of all of the saws would cost more than $5 million, and would probably result in a loss in market share over the next quarter because of bad publicity. Still, a recall is the right economic decision. Which of the following, if true, most supports the conclusion above?
A
Defective chainsaws can seriously injure or even kill the people who use them.
B
Charlie’s chief rival has recalled two of its products within the past year.
C
Product recalls often result in a perception by customers that a given product is permanently defective, even after the defect has been remedied.
D
The stocks of publicly traded companies that announce product recalls often drop upon the announcement, but they generally return to the pre-announcement level within 12 months.
E
Three years ago a rival company went out of business because of large punitive damages awarded to a plaintiff who had been injured by a defective chainsaw.