The figure given below shows the marginal cost and the marginal benefit of information curves. In the figure given below, which of the following is true of a consumer who has gathered information equal to I3?
Figure 14.2
A) The consumer has made an optimal search.
B) The consumer is relying solely on common knowledge.
C) The consumer has acquired all available information that is beneficial to her.
D) Further information will be costless to this consumer.
E) The consumer should increase her search.
Correct Answer:
Verified
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