The following figure shows the marginal cost and the marginal benefit of information curves. In the figure given below, the optimal level of search is _____.
Figure 14.2

Question

The following figure shows the marginal cost and the marginal benefit of information curves. In the figure given below, the optimal level of search is _____.​ ​
Figure 14.2

Quizplus · Accepted Answer

The optimal level of search is where marginal benefit equals marginal cost. In the given figure, this intersection point is at I₂. At this point, the net benefit of additional search is maximized, indicating that it is the best level of search.

The Following Figure Shows the Marginal Cost and the Marginal