A Car Sells at Different Prices at Different Dealerships in an Oligopolistic

question 188

Multiple Choice

A car sells at different prices at different dealerships in an oligopolistic market.If a consumer has imperfect information about the price of a car at each dealership, he should

• A)always gather all available information about prices.
• B)gather information about prices until the expected marginal utility of more information equals the marginal cost of gathering it.
• C)gather information about prices only if it can be gathered without cost.
• D)ignore information about prices because it is irrelevant to making an "optimally imperfect" decision.

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