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:

Total Cost

The sum of all expenses incurred in the production of goods or services, including fixed and variable costs.

Pricing Transparency

Pricing Transparency is the practice of openly and clearly disclosing the prices of goods or services, including any additional fees or charges, allowing consumers to make informed purchasing decisions.

Mobile Devices

Portable electronic devices, such as smartphones and tablets, designed for connectivity and a range of functions including communication and media consumption.

Prestige Pricing

A pricing strategy where goods are priced higher than the market average to mark their exclusivity and high status.