An information is beneficial to the decision-maker only when:
A)its marginal cost is zero.
B)its marginal benefits exceeds its marginal cost.
C)the possibility of inaccurate transmission is nullified.
D)its marginal benefit is positive.

Question

Quizplus · Accepted Answer

The value of information to a decision-maker is determined by its ability to improve decision outcomes, which occurs when the additional benefits gained from the information (marginal benefits) exceed the additional costs incurred to obtain it (marginal cost).

An Information Is Beneficial to the Decision-Maker Only When