When a lack of information exists for parties to a deal:
A) it is always worth getting more information before making a decision.
B) the cost of acquiring information sometimes is prohibitive and not worth it.
C) an exchange will never happen.
D) the exchange will always happen anyway, with little chance of maximizing surplus.

Question

Quizplus · Accepted Answer

While more information is always helpful, there may be situations where the cost of acquiring additional information outweighs the potential benefits. In these cases, parties may decide to go ahead with the exchange anyway or make a decision based on the available information. It is important to weigh the costs and benefits of acquiring additional information before making a decision.

When a Lack of Information Exists for Parties to a Deal