Economic theory predicts that rational customers will collect information only to the point at which the marginal benefit of obtaining the information in terms of incremental value to making a choice equals the marginal cost.

Question

Quizplus · Accepted Answer

This statement accurately reflects the basic principle of rational decision-making and information gathering in economics, where individuals seek to maximize their benefits while minimizing their costs. When the marginal cost of obtaining more information outweighs the potential marginal benefit, customers are less likely to pursue additional information and may instead make a decision based on the information they have already collected.

Economic Theory Predicts That Rational Customers Will Collect Information Only