The optimal amount of information to obtain for any purchase is

Question

Quizplus · Accepted Answer

It is important to obtain some amount of information before making a purchase, but the optimal amount is where the marginal benefit of obtaining more information is equal to the marginal cost of obtaining that information. This ensures that the additional information obtained provides enough value to justify the cost of obtaining it. The optimal amount of information may vary depending on the size of the expenditure and the specific circumstances of the purchase. Simply relying on advice from friends and family may not provide a comprehensive understanding of the purchase and may be biased.

The Optimal Amount of Information to Obtain for Any Purchase