Which best describes the relationship between the cost of acquiring information and return?
A) A high return must compensate for a high cost of acquiring information.
B) A higher cost of information corresponds with a low return.
C) A low cost of acquiring information corresponds with a high return.
D) A higher return results in a lower cost of acquiring information.

Question

Quizplus · Accepted Answer

A high return must compensate for a high cost of acquiring information, as the investment in acquiring information is justified if the potential return is significant enough to outweigh the costs.

Which Best Describes the Relationship Between the Cost of Acquiring