Additional costly information should be acquired when the expected benefit of an improved decision exceeds the cost of the information.

Question

Quizplus · Accepted Answer

This statement is correct. Acquiring additional costly information should be based on a cost-benefit analysis. If the expected benefit of the improved decision exceeds the cost of the information, then it is worth acquiring that information. Otherwise, it may not be cost-effective to acquire that information.

Additional Costly Information Should Be Acquired When the Expected Benefit