Warranties that cover the cost of a repair or replacement will:

A) decrease the consumer's expected utility from consuming the good.
B) increase the consumer's expected utility from consuming the good.
C) have no impact on the consumer's expected utility from consuming the good.
D) reverse the consumer's diminishing marginal utility.

Expected Utility

A concept in economics and finance that represents the average outcome when individuals are faced with uncertain decisions, often used in the context of risk and decision making.

Warranties

Guarantees provided by the seller or manufacturer, asserting that a product will meet specified criteria of performance over a certain period, and offering remedies in case of failure.