Exhibit 14-2 In Exhibit 14-2, if a consumer gathers an amount of information equal to I₂,

Name: Exhibit 14-2 In Exhibit 14-2, if a consumer gathers an amount of information equal to I 2 ,
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Question

Quizplus · Accepted Answer

I₂ represents the optimal level of information search where the marginal benefit of acquiring more information is equal to the marginal cost of acquiring that information. Therefore, if a consumer gathers this amount of information, he has made the optimal search.

Exhibit 14-2 in Exhibit 14-2, If a Consumer Gathers