This graph illustrates the marginal costs and marginal benefits of acquiring information before making a major purchase.
Suppose the marginal cost and marginal benefit curves were MC and MB several decades ago.However,because information about this product is now available on line,the

Question

This graph illustrates the marginal costs and marginal benefits of acquiring information before making a major purchase. 
Suppose the marginal cost and marginal benefit curves were MC and MB several decades ago.However,because information about this product is now available on line,the

Quizplus · Accepted Answer

With the availability of information online, the marginal cost of acquiring information has decreased while the marginal benefit of acquiring information has stayed the same. This means that individuals can now acquire more information without incurring as much cost, making it optimal to acquire more information before making a major purchase. Therefore, the optimal amount of information will increase.

This Graph Illustrates the Marginal Costs and Marginal Benefits of Acquiring