Given the typical shapes of the marginal cost and marginal benefit curves for collecting information,

Question

Quizplus · Accepted Answer

The typical shapes of the marginal cost and marginal benefit curves for collecting information suggest that there is a point where the marginal cost of obtaining information is equal to the marginal benefit of obtaining it, resulting in an optimal level of information. This point is not at either extreme of complete ignorance or becoming an expert, but rather somewhere in between. Therefore, the best choice is D, which suggests that the equilibrium is somewhere between these two extremes.

Given the Typical Shapes of the Marginal Cost and Marginal