Rational ignorance about the efficient quantity of a public good can result in
A) the principle of minimum differentiation.
B) excludable goods.
C) bureaucratic overprovision of a good.
D) the vertical summation of individual's marginal benefit curves.

Question

Quizplus · Accepted Answer

Rational ignorance occurs when individuals choose not to acquire information because the cost of doing so outweighs the benefits. This can lead to bureaucratic overprovision of a public good because decision-makers may not have accurate information about the efficient quantity needed, leading to excessive provision.

Rational Ignorance About the Efficient Quantity of a Public Good