An efficient allocation of resources may be achieved if decisionmakers are faced with all the benefits and all the costs of their decisions.

Question

Quizplus · Accepted Answer

When decision-makers have information about both the benefits and the costs of their decisions, they are more likely to make efficient use of resources. This is because they are able to weigh the potential benefits against the costs and make a decision that maximizes their net benefits. In the absence of complete information, decision-makers may make inefficient decisions that waste resources or fail to fully capture the potential benefits of a particular course of action.

An Efficient Allocation of Resources May Be Achieved If Decisionmakers