Multiple Choice
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.
Correct Answer:

Verified
Correct Answer:
Verified
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