If John in searching for a particular product,the lowest price observed so far in his search process is called the
A) search price.
B) discovered price.
C) marginal price.
D) reservation price.

Question

Quizplus · Accepted Answer

The lowest price observed so far in John's search process is not his reservation price (D), which is the maximum price he is willing to pay for the product. It's also not his search price (A), as that refers to the cost incurred by John (e.g. time, effort) to search for the product. Marginal price (C) refers to the cost of producing an additional unit of the product, and is not relevant to John's search process. Therefore, the best choice is B, discovered price, which refers to the lowest price John has found for the product during his search process.

If John in Searching for a Particular Product,the Lowest Price