If the cost of acquiring more information outweighs the benefit of having more information about a good,then we can predict:
A) the exchange will definitely not take place.
B) the exchange may take place anyway.
C) the exchange will not benefit anyone.
D) the exchange will take place, but will be regretted in the future.

Question

Quizplus · Accepted Answer

Although the cost of acquiring more information outweighs the benefit, the exchange may still take place because the parties involved may have different preferences or different levels of risk aversion. Additionally, there may be time constraints or other factors that make it difficult to gather more information before making the exchange.

If the Cost of Acquiring More Information Outweighs the Benefit