The Reason the Marginal Benefit of Information Curve Is Downward

question 37

Multiple Choice

The reason the marginal benefit of information curve is downward sloping is because

• A)some information is useless.
• B)most information is useless.
• C)information is subject to the law of diminishing marginal returns.
• D)there is only so much to learn about a product.

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Definitions:

Arousal

The physiological and psychological state of being awoken or stimulated to action, often associated with increased activity in the sympathetic nervous system.

Difficult Tasks

Activities or problems that require significant effort, skill, or intellectual capacity to be completed successfully.

Confidence

The feeling or belief that one can rely on someone or something; firm trust.

Social Facilitation

The tendency for people to perform differently when in the presence of others than when alone, typically improving on simple or well-rehearsed tasks.