Jane wants to buy a beautiful doll as a gift for her sister's birthday. She knows that the same product is offered in different shops with prices of $120, $100, and $80 with odds of one-third of finding each price. She just stopped at a shop and knows that the price is $100. If the search cost is $8 per time, what should she do?
A. Accept the offer in hand.
B. She should toss a coin.
C. Search once more and decide again upon knowing the price.
D. Insufficient information to determine.
Answer: A
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A) P = MC. B) MR = MC. C) P < ATC. D) P = MR. E) MC = ATC.
At a Nash equilibrium, each player in a game is said to be doing as well as he can given the actions of his competitor
a. True b. False Indicate whether the statement is true or false
Which of the following will not cause consumption, and as a result, aggregate demand, to increase?
a. an optimistic business forecast of future income growth b. a tax cut c. an increase in consumer confidence d. a tax increase
The economy of Cuba most closely approximates:
a. A market economy b. A command economy c. Pure capitalism d. Laissez-faire capitalism