Top Posters
Since Sunday
26
21
21
21
20
19
19
19
18
18
18
18
New Topic  
wrote...
Posts: 205
3 weeks ago
Discovered price$120$105$110
Probability of discovering a lower price in next visit  0.50   0.125 0.25
Best guess of a lower price$110$102.50$105
Best guess of savings from a lower price          
Marginal benefit: Expected savings          

Table 14.5

Table 14.5 contains data on the marginal benefit of searching for a lower price for a digital camera.
The price of the camera ranges from $100 at the lowest price store to $140 at the highest price store.
For any randomly selected store, any price from the low price to the high price is equally likely.
The marginal cost of visiting each store is constant at $1.50 per visit.


Refer to Table 14.5. At the discovered price of $120, the best guess of savings from a lower price is:

▸ $2.50.

▸ $5.

▸ $10.

▸ $20.
Textbook 
Microeconomics: Principles, Applications, and Tools
Edition: 8th
Authors:
Read 60 times
3 Replies
Replies
Answer verified by a subject expert
wrote...
Posts: 216
3 weeks ago
Sign in or Sign up in seconds to unlock everything.
$10.
1
Related Topics
wrote...
3 weeks ago
Thank you
wrote...
3 weeks ago
Welcome ツ
New Topic      
Explore
Post your homework questions and get free online help from our incredible volunteers.
Learn More
Improve Grades
Help Others
Save Time
Accessible 24/7
  145 People Browsing
Your Opinion
Related Images
 626
 479
 76