Question

Search costs are _____. (a the financial and opportunity costs consumers pay when looking for a good or service (b the point at which quantity demanded and quantity supplied are equal (c a situation in which quantity supplied is greater than quantity demanded; also known as excess supply (d a situation in which quantity demanded is greater than quantity supplied; also known as excess demand

Answer 1

A.) the financial and opportunity costs consumers pay when looking for a good or service

Answer 2

Search costs are the financial and opportunity costs consumers pay when looking for a good or service. Correct answer: A Examples of search costs are: the cost of acquiring information, the the opportunity cost of the time utilized for searching better options.

Every consumer searches for better options. However, this search lasts only till the time the additional cost of searching is less than the marginal benefit which it provides.