On a holiday to Cancun, Mexico, you find yourself eating every meal at the local McDonald's, rather than having a hamburger from one of the street vendors.Your traveling companion claims that you are irrational, since you never eat McDonald's hamburgers when you are at home and McDonald's hamburgers cost more than those prepared and sold by Cancun's street vendors.An economist would most likely explain your behaviour by suggesting that:

Question

Quizplus · Accepted Answer

The economist would most likely argue that you are choosing to eat at McDonald's in Cancun because of the consistent quality that the McDonald's brand name guarantees, even though it may cost more than the local street vendors. This is a rational decision based on the information available to you as a consumer.

On a Holiday to Cancun, Mexico, You Find Yourself Eating