The Optimal Amount of Information to Obtain for Any Purchase

question 50

Multiple Choice

The optimal amount of information to obtain for any purchase is

• A) zero.
• B) the amount where the marginal benefit and marginal cost of additional information are equal.
• C) independent of the size of the expenditure.
• D) to get advice from friends and family.
• E) the amount where the total benefit and total cost of additional information are equal.

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Definitions:

External Restraint

Controls imposed from outside an individual that influence behavior, such as laws, social norms, or cultural expectations.

Homicide

The act of one human killing another, ranging from accidental to premeditated murder, and regarded as a severe crime under the law.

Suicide

The act of intentionally causing one's own death.

Genocide

The deliberate killing of a large number of people from a particular nation or ethnic group with the aim of destroying that nation or group.