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Joe's Search Costs Are $7 Per Search

Question 127

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Joe's search costs are $7 per search.He wants to buy a video player for his wife for Christmas,and the lowest price he's found so far is $200.Joe thinks one-third of the stores charge $300 for a video player,one-third charge $200,and one-third charge $185.Should Joe continue to search or should he buy a video player at a price of $200?

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Joe's expected benefit of searching once...

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