Given the Functions for the Marginal Cost and Marginal Benefit

question 80

Multiple Choice

Given the functions for the marginal cost and marginal benefit of collecting information,

• A) there is no equilibrium amount.
• B) consumers tend to become experts about most goods.
• C) consumers remain completely ignorant about most goods.
• D) the equilibrium is somewhere between complete ignorance and becoming an expert.
• E) it always pays to get more information.