Economic theory suggests that rational customers will collect information only to the point at which:

Question

Quizplus · Accepted Answer

Economic theory suggests that people will continue to gather information until the marginal benefit equals the marginal cost. Once the cost of acquiring more information outweighs the potential benefits, rational consumers will stop collecting information and make a decision based on the information they have already obtained. Therefore, option A is the correct answer. Option B is incorrect because it suggests that customers will continue to gather information even after the purchase, which is not supported by economic theory. Option C is incorrect because it assumes that there is a limit to the amount of information a customer can obtain based on their budget, while economic theory focuses on the cost-benefit analysis of obtaining information. Option D is incorrect because it suggests that customers will stop gathering information as soon as the cost exceeds the benefit, which is unrealistic because customers may still obtain information even if the marginal benefit is slightly lower than the marginal cost.

Economic Theory Suggests That Rational Customers Will Collect Information Only