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

question 29

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, the consumer 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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Definitions:

Double approach-avoidance Conflict

A psychological conflict that occurs when a person faces a choice between two options, each having both appealing and negative aspects.

Uplifts

Positive experiences or occurrences that can improve one's mood and counterbalance stress, enhancing overall well-being.

Hassles

Minor everyday annoyances or problems that, cumulatively, can contribute to stress and affect well-being.

Downturns

Periods or phases characterized by economic decline, reduced activity, or diminished performance.