Refer to the figure below. If the relevant curves are MC₁ and MB₂, a rational consumer will acquire ________ units of information, the amount for which marginal benefit for information is ________ its marginal cost.
A)4; equal to
B)4; more than
C)5; more than
D)5; equal to

Question

Refer to the figure below. If the relevant curves are MC₁ and MB₂, a rational consumer will acquire ________ units of information, the amount for which marginal benefit for information is ________ its marginal cost. 
A)4; equal to 
B)4; more than 
C)5; more than 
D)5; equal to

Quizplus · Accepted Answer

It is rational to acquire information up to the point at which the marginal benefit of additional information equals the marginal cost of additional information. MC₁ and MB₂ intersect at 5 units of information.

Refer to the Figure Below