This graph illustrates the marginal costs and marginal benefits of acquiring information before making a major purchase.
Suppose this graph describes a town in which the only way to gather any information about the good is through Consumer Reports. If the subscription price of Consumer Reports increases, then the impact of this could be portrayed by the marginal:
A) benefit curve shifting from MB0 to MB1.
B) cost curve shifting from MC1 to MC0.
C) benefit curve shifting from MB1 to MB0.
D) cost curve shifting from MC0 to MC1.
Correct Answer:
Verified
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