Author Question: Consumers are generally willing to spend more time researching cars before making a purchase than ... (Read 83 times)

kaid0807 · **on:** Jun 30, 2018

Consumers are generally willing to spend more time researching cars before making a purchase than they do researching paper towels because:
a. the cost of gathering information about paper towels is very small.
b. the cost of gathering information about cars is less than the cost of gathering information about paper towels.
c. the cost of gathering information about cars is less than the cost of gathering information about paper towels.
d. the net benefit from gathering additional information about paper towels is likely much greater than the net benefit derived from gathering additional information about cars.

Question 2

A nation can gain from international trade when the relative domestic prices of the nation differs from that in other countries, and it imports goods for which it is a high opportunity cost producer.
a. True
b. False
Indicate whether the statement is true or false