As more information is gather, the marginal cost of additional information ________ and the marginal benefit of additional information ________.
A) increases; increases
B) increases; decreases
C) decreases; increases
D) decreases; decreases

Question

Quizplus · Accepted Answer

As more information is gathered, the marginal cost of obtaining additional information typically increases because it becomes more difficult and resource-intensive to acquire new information. Meanwhile, the marginal benefit of additional information decreases because the most valuable information is usually obtained first, and additional information tends to provide diminishing returns.

As More Information Is Gather, the Marginal Cost of Additional