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

question 188

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, he 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:

Decision Making

The process of making choices by identifying a decision, gathering information, and assessing alternative resolutions.

Federal Sentencing Guidelines

A set of rules designed to standardize sentencing policies in United States federal courts for convicted criminals to ensure consistency and fairness in punishment.

Business Ethics

The study of appropriate business policies and practices regarding potentially controversial issues such as corporate governance, insider trading, bribery, discrimination, corporate social responsibility, and fiduciary responsibilities.

Federal Sentencing Guidelines

A set of standards that outline the recommended punishment for individuals and organizations convicted of federal crimes in the United States.