It Is Rational to Be Ignorant When

question 190

Multiple Choice

It is rational to be ignorant when:

• A) the benefits of the information outweigh the costs of acquiring the information.
• B) the costs of becoming informed are greater than the benefits of being informed.
• C) you have limited mental capacity.
• D) dollars or profits do not matter.

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Definitions:

Consumer Demand

The desire and willingness of consumers to purchase goods and services at various price points, driving the market dynamics for those goods and services.

Profitability

The ability of a company to generate earnings more than its expenses and costs, determining its financial success and viability.

Latent Need

A customer's unrecognised or subconscious need that has not yet been identified or addressed by companies.

Critical Needs

Fundamental requirements identified by customers that must be addressed by a product or service for it to be considered viable and satisfactory.