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Which of These Is an Example of Rational Inattention

Question 38

Multiple Choice

Which of these is an example of rational inattention?


A) submitting a paper with a few typos,knowing that they won't affect the grade
B) sleeping in later than you had intended
C) a firm delaying price changes to avoid losing customers
D) a firm being unsure of its competitors' prices
E) a firm changing prices so often its customers stop noticing

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