This graph illustrates the marginal costs and marginal benefits of acquiring information before making a major purchase. Suppose this graph describes a town in which the only way to gather any information about the good is through Consumer Reports. If the subscription price of Consumer Reports increases, then the impact of this could be portrayed by the marginal:

Question

This graph illustrates the marginal costs and marginal benefits of acquiring information before making a major purchase.  Suppose this graph describes a town in which the only way to gather any information about the good is through Consumer Reports. If the subscription price of Consumer Reports increases, then the impact of this could be portrayed by the marginal:

Quizplus · Accepted Answer

The higher subscription price would have the effect of shifting the MC curve up and to the left.

This Graph Illustrates the Marginal Costs and Marginal Benefits of Acquiring