Consumers will willingly make less-informed decisions:
A)if information costs are less than the perceived benefits of gathering information.
B)if information costs are greater than the perceived benefits of gathering information.
C)since ignorance always leads to bliss.
D)whenever acquiring more information requires sacrifice.

Question

Consumers will willingly make less-informed decisions:
A)​if information costs are less than the perceived benefits of gathering information.
B)​if information costs are greater than the perceived benefits of gathering information.
C)​since ignorance always leads to bliss.
D)​whenever acquiring more information requires sacrifice.

Quizplus · Accepted Answer

Consumers will opt for less-informed decisions if the costs (in terms of time, effort, or money) of acquiring additional information exceed the perceived benefits that the information would provide. This is because rational consumers aim to maximize their utility, and when the cost of information outweighs its value, it is rational to make decisions with the information already at hand.

Consumers Will Willingly Make Less-Informed Decisions