Consumers Are Generally Willing to Spend More Time Researching Cars

question 38

Multiple Choice

Consumers are generally willing to spend more time researching cars before making a purchase than researching paper towels because:

• A)the cost of gathering information about paper towels is very low.
• B)the cost of gathering information about cars is lower than the cost of gathering information about paper towels.
• C)the cost of gathering information about cars is lower than the benefit that can be gained.
• D)the net benefit from gathering additional information about paper towels is higher than the net benefit derived from gathering additional information about cars.
• E)the cost of gathering information about cars is higher than the benefit that can be gained.

---

Definitions:

Absorbed

Pertains to costs that have been taken into account or integrated into the pricing of products or services, often in relation to overheads or other indirect expenses.

Share of Losses

An accounting term referring to the proportion of losses allocated to an entity in a partnership or joint venture.

Realization

The process of converting non-cash assets into cash or recognizing revenue when it is earned regardless of when cash is received.

Noncash Assets

Assets that cannot be easily converted to cash, such as property, plant, and equipment, or intellectual property.