Top Posters
Since Sunday
26
21
21
21
20
19
19
19
18
18
18
18

# Discovered price$120$105$110Probability of discovering a lower price in next visit 0.50 0.125 ... 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: O'Sullivan, Sheffrin, Perez
3 Replies
Replies
Answer verified by a subject expert
wrote...
Posts: 216
3 weeks ago
Related Topics
wrote...
3 weeks ago
 Thank you
wrote...
3 weeks ago
 Welcome ツ