Consumers are generally willing to spend more time researching cars before making a purchase than researching paper towels because:
A)the cost of gathering information about paper towels is very low.
B)the cost of gathering information about cars is lower than the cost of gathering information about paper towels.
C)the cost of gathering information about cars is lower than the benefit that can be gained.
D)the net benefit from gathering additional information about paper towels is higher than the net benefit derived from gathering additional information about cars.
E)the cost of gathering information about cars is higher than the benefit that can be gained.

Question

Quizplus · Accepted Answer

When making a purchase as significant as a car, the potential benefits from gathering additional information outweigh the cost of doing so. In contrast, the cost of gathering information about paper towels is relatively low, so consumers are not as motivated to invest as much time in researching them.

Consumers Are Generally Willing to Spend More Time Researching Cars