Refer to the figure below. Suppose MC1 is the marginal cost of information and MB1 is the marginal benefit of information. Should a rational consumer pay $6 to get a 5th unit of information? 
A) Yes, because at this price, the marginal benefit of the 5th unit exceeds its marginal cost.
B) No, because at this price, the marginal cost of the 5th unit exceeds its marginal benefit.
C) Yes, because at this price, the marginal benefit of the 5th unit equals its marginal cost.
D) No, because at this price the marginal benefit of the 5th unit exceeds its marginal cost.
Correct Answer:
Verified
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