A car sells at different prices at different dealerships in a local market. If a consumer has imperfect information about the price of a car at each dealership, he should
A) always gather all available information about prices.
B) gather information about prices until the expected marginal benefit of more information equals the marginal cost of gathering it.
C) gather information about prices only if it can be gathered without cost.
D) ignore information about prices because it is irrelevant to making an "optimally imperfect" decision.

Question

Quizplus · Accepted Answer

The consumer should gather information until the expected marginal benefit of additional information equals the marginal cost of obtaining it, optimizing the decision-making process.

A Car Sells at Different Prices at Different Dealerships in a Local