The Number of U

question 87

Multiple Choice

The number of U.S. households with access to the Internet has grown is growing rapidly. Compared to 50 years ago, one would predict that when considering a major purchase, people today will gather:

• A)less information because the Internet has lowered the cost of gathering information.
• B)less information because the Internet has increased the benefit of gathering information.
• C)more information because the Internet has lowered the cost of gathering information.
• D)more information because the Internet has increased the cost of gathering information.

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Definitions:

Marginal-Cost Curve

A graphical representation showing how the cost to produce one additional unit of a good or service changes as production volume changes.

Average-Total-Cost Curve

A curve showing the average total cost of producing different levels of output in the short run.

Punishment

A consequence imposed after an undesirable behavior, aimed at reducing that behavior.

Negative Reinforcement

A behavioral concept where the removal of an unfavorable event strengthens the behavior that led to its removal.