Carlos is shopping for a tablet,and since he has a relatively high opportunity cost of search time,he will spend less time searching for a lower price and will also have
A) a higher marginal benefit of search.
B) a higher marginal cost of search.
C) a lower marginal benefit of search.
D) a lower marginal cost of search.

Question

Quizplus · Accepted Answer

Since Carlos has a high opportunity cost of search time, he will spend less time searching for a lower price. As a result, his search time will have a higher marginal cost, making option B the correct answer. Option A is incorrect because a higher opportunity cost of search time does not necessarily mean an individual will have a higher marginal benefit of search. Options C and D are also incorrect because a lower opportunity cost of search time would lead to a lower marginal cost of search and a higher marginal benefit of search, respectively.

Carlos Is Shopping for a Tablet,and Since He Has a Relatively