The optimal amount of information to acquire before making a purchase is:
A)zero.
B)as much as possible.
C)the amount such that the total cost of acquiring information equals the total benefit.
D)the amount such that the marginal cost of acquiring information equals the marginal benefit.

Question

Quizplus · Accepted Answer

It is optimal to engage in more of any activity so long as the added benefit is expected to be greater than or equal to the added cost,

The Optimal Amount of Information to Acquire Before Making a Purchase