If the cost of acquiring more information about a good outweighs the benefit of having that extra information, then we can predict that the exchange:
A)will definitely not take place.
B)may take place anyway.
C)will not benefit anyone.
D)will take place, but will be regretted in the future.

Question

Quizplus · Accepted Answer

The cost-benefit principle suggests that individuals make decisions by comparing the costs and benefits of various actions. If the cost of acquiring more information about a good outweighs the benefit, it doesn't necessarily prevent the exchange from happening; individuals may still proceed with the exchange based on the information they already have, accepting the uncertainty.

If the Cost of Acquiring More Information About a Good