When parties attempting to enter into an agreement lack information:
A)they should always gain more information before making a decision.
B)the cost of acquiring information is sometimes prohibitive.
C)an exchange will never happen.
D)the exchange will happen, but surplus is unlikely to be maximized.

Question

Quizplus · Accepted Answer

The cost of acquiring information can sometimes be too high, making it impractical for parties to gather all necessary information before making a decision.

When Parties Attempting to Enter into an Agreement Lack Information