A consumer who buys a product without having compared prices at nearby stores
A)violates the assumption of rationality underlying consumer theory.
B)is irrational because she could save money by shopping around.
C)is rational because it would be costly to find out how much the product would cost elsewhere.
D)is rationally ignorant if she expects the costs of doing so to be greater than possible savings.

Question

Quizplus · Accepted Answer

This consumer is acting rationally by not comparing prices if the costs of doing so, such as transportation or time, are greater than the possible savings. This is known as rationally ignorant behavior.

A Consumer Who Buys a Product Without Having Compared Prices