Crucial assertions in the menu-cost literature are that those costs ________ be large for them to have an effect on firms' pricing, while potential total welfare losses ________ menu costs that have been avoided
A) need not, may be several times larger than
B) need not, are generally much less than
C) must, may be several times larger than
D) must, are generally much less than
A
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Disneyland price discriminates because
A) everyone loves going to The Happiest Place on Earth, so they'll pay whatever Disneyland wants to charge. B) children are cheaper to service, so Disneyland can charge lower prices for a children's ticket. C) only a certain number of people can get into Disneyland at any given time, limiting supply, and the market demand curve is nearly completely inelastic. D) local residents likely wouldn't go to the park at prices Disneyland can charge for tourists, which would reduce Disneyland's profits.
The rational-ignorance effect is a result of
What will be an ideal response?