Consumers are generally willing to spend more time researching cars before making a purchase than they do researching paper towels because:
a. the cost of gathering information about paper towels is very small
b. the cost of gathering information about cars is less than the cost of gathering information about paper towels.
c. the cost of gathering information about cars is less than the cost of gathering information about paper towels.
d. the net benefit from gathering additional information about paper towels is likely much greater than the net benefit derived from gathering additional information about cars.
c
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A Roth IRA differs from a traditional IRA in that
A. the Roth IRA allows for savings towards retirement. B. the Roth IRA is phased out at certain income levels. C. the Roth IRA is not tax deductible at the time it is deposited. D. all of these answer options are correct.
Suppose 1000 units of a good are sold at $10 a unit. If its price increases to $20 and total revenue increases to $20,000 and increases by $1000 for every dollar increase in price after that, we know that
A. demand is perfectly elastic. B. the demand curve is vertical. C. the demand curve is a rectangular hyperbola. D. the demand curve is downward sloping and the firm is on the inelastic portion of the demand curve.
During World War II, there was an extensive black market for tires in the United States. The most likely explanation for the existence of the black market was that
A. the price of tires was artificially held down by price controls. B. the price of tires was artificially increased by price controls. C. tires were one of the few goods not subject to price controls. D. gasoline rationing greatly restricted civilian driving.
The levels of national income per capita among developing countries (DVCs) are:
A. All within a narrow range B. Widely varied C. All growing rapidly D. About half of those of industrially advanced countries (IACs)