If Consumers Have Limited Information About Price and Search Costs

question 72

Multiple Choice

If consumers have limited information about price and search costs exist,then

• A) the result must be that all firms will charge the same price.
• B) the monopoly price must result.
• C) the full-information, competitive price is not an equilibrium.
• D) the difference in prices between firms will be greater than the search cost.

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Definitions:

Reprimand

A formal expression of disapproval, often in the workplace or educational settings, aimed at correcting undesirable behavior.

Truth

The property of being in accord with fact or reality, often considered as an ultimate standard or objective to be sought.

Social Comparison

The process of evaluating oneself in relation to others, often in terms of abilities, achievements, and social status.

Reprimanding

The act of expressing a strong disapproval or criticism of someone, especially formally.