The figure given below shows the marginal cost and the marginal benefit of information curves. In the figure given below, the marginal benefit curve shows that:
Figure 14.2
A) as consumers become more familiar with a market, additional information yields less and less improvement in product quality or value.
B) the marginal benefit of information increases as a consumer spends more and more time acquiring information.
C) greater and greater distances must be covered to acquire a marginal piece of information.
D) the cost of gathering information diminishes as more of it is gathered.
E) common knowledge alone is enough to decide consumer choice.
Correct Answer:
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