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.

Perform hypothesis tests and construct confidence intervals for population means and variances.

Differentiate between independent and dependent (matched pairs) samples.

Explain the rationale behind paired-difference experiments and their advantages.

Apply appropriate statistical methods to test hypotheses about means and variances in practical situations.

---

Definitions:

Missed Field Goal

A missed field goal in sports, particularly American football, occurs when a player attempts to score by kicking the ball through the goalposts, but fails.

Scatter Diagram

A graph used to visualize the relationship between two quantitative variables, showing how one variable relates to another.