Which of these is an example of rational inattention?
A) submitting a paper with a few typos,knowing that they won't affect the grade
B) sleeping in later than you had intended
C) a firm delaying price changes to avoid losing customers
D) a firm being unsure of its competitors' prices
E) a firm changing prices so often its customers stop noticing
Correct Answer:
Verified
Q79: Under monopolistic competition _.
A)many goods and services
Q80: Under monopolistic competition _.
A)the goods purchased are
Q81: Menu costs are an important source of
Q82: Staggered price setting _.
A)leads to frequent price
Q83: Apply the concepts of menu costs and
Q84: Do you think that prices are more
Q85: Staggered price setting _.
A)refers to the lack
Q87: Empirical evidence that changes in monetary policy
Q89: Empirical evidence shows that prices are sticky
Q123: There are no questions for this section.
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