The Figure Given Below Shows the Marginal Cost and the Marginal

question 80

Multiple Choice

The figure given below shows the marginal cost and the marginal benefit of information curves. In the figure given below, if a consumer gathers an amount of information equal to I₂, it implies that:​ ​
Figure 14.2

• A)she has made the optimal search.
• B)she has avoided the cost of acquiring information.
• C)she has searched too much.
• D)further information will be costless to her.
• E)she should increase her search.

Reflect on the relationship between media sources and audiences.

Identify and discuss the role of social media in fostering networked individualism.

Recognize the significance of media ownership concentration and its effects on society.

Understand how mass media audiences can be both active and passive.

---

Definitions:

Profit Maximizing

The strategy or method of adapting manufacturing and sales processes to secure the maximum achievable profit.

Firm Interest

The commercial or financial concerns and objectives of a business organization.

Socially Optimal

A condition or level of operation where social welfare is maximized, considering all costs and benefits to society.

Marginal Cost

The rise in total expenses incurred from the production of an extra unit of a product or service.