In the tourist-trap model, a consumer might pay more than the marginal cost for a good sold in a competitive market because
A) the consumer is not free to search for lower prices.
B) souvenir stores are part of a nationwide cartel.
C) the cost of searching for a cheaper good is more than the markup over the marginal cost.
D) the difference in prices between stores will be smaller than the search cost.
C
Economics
You might also like to view...
Which of the following assets is the most liquid in the United States?
A) U.S. Treasury Bonds B) corporate bonds C) U.S. currency D) an antique car
Economics
Difficulties in measuring the unemployment rate and its component parts make crafting policy difficult
Indicate whether the statement is true or false
Economics