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:

Compulsory License

A government-granted permission allowing someone else to produce a patented product or process without the consent of the patent owner.

Industrial Design

The professional practice of designing products used by millions of consumers around the world, focusing on the physical appearance, functionality, and manufacturability of the product.

Exclusive Distributor

A designated distributor given sole rights by a supplier to sell their product within a specific territory or market.

Trademark

A symbol, word, or words legally registered or established by use as representing a company or product.