On a vacation 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 home,and McDonald's hamburgers cost more than those prepared and sold by Cancun's street vendors.An economist would most likely explain your behavior by suggesting that

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The economist would suggest that the reason for choosing McDonald's over the street vendors is because the McDonald's brand name suggests consistent quality. Even though the cost may be higher, the perceived quality of the product is worth paying more for. This behavior is rational based on the consumer's preference for consistent quality, rather than being irrational.

On a Vacation to Cancun,Mexico,you Find Yourself Eating Every Meal