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In the Tourist-Trap Model,a Consumer Might Pay More Than the Marginal

Question 118

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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.

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