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Suppose a Consumer Has Determined That Her Reservation Price,R,is $75

Question 96

Multiple Choice

Suppose a consumer has determined that her reservation price,R,is $75.The expected benefit of an additional search at this reservation price is $25.Based on this information we can conclude that:


A) search costs are $25 per search.
B) this consumer will reject any price above $25.
C) this consumer will accept any price below $75.
D) search costs are $25 per search, and this consumer will accept any price below $75.

Correct Answer:

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