If Information Is Less Costly and More Easily Available, Then

question 27

Multiple Choice

If information is less costly and more easily available, then usually this

• A) makes markets more efficient.
• B) makes markets less efficient.
• C) increases profit opportunities.
• D) increases the opportunity cost of acquiring more information.

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Definitions:

Variable Costs

Costs that change in proportion to the level of output or activity in a business.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums, remaining constant regardless of business activity levels.

Organizational Response

Refers to how an organization reacts to external or internal events, changes in the market, or other pressures to maintain or improve its standing.

Labor Strike

A work stoppage caused by the mass refusal of employees to work, typically to protest against terms of employment.