Len Knows Little About Atlases and Does Not Want to Spend

question 166

Multiple Choice

Len knows little about atlases and does not want to spend the time to learn about them.However,he needs to buy at atlas to use in a school history project.Not wanting to make a poor choice,he is likely to:

• A) intuitively make the right choice
• B) avoid making a decision by not buying an atlas
• C) buy the most expensive atlas (perhaps paying too much),guessing that the price is related to quality
• D) research the product and buy the least expensive atlas
• E) buy the least expensive atlas because most consumers feel that price is not directly related to quality

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Definitions:

Scarce

Describes a condition where resources, goods, or capabilities are limited in availability relative to the demand for them.

Wants

Desires for goods, services, or experiences that are not essential for survival but are deemed desirable based on individual preferences.

Comparative Advantage

The ability of a country or individual to produce a particular good or service at a lower opportunity cost than another.

Absolute Advantage

The ability of an individual, company, or country to produce a good or service at a lower cost per unit than the cost at which any other entity produces that good or service.