Information plays an important role in the market because it allows:
A) market participants to make good decisions based on cost-benefit analysis.
B) sellers to "pad" their sales pitch.
C) the media to grow in importance.
D) managers to make more risky decisions.

Question

Quizplus · Accepted Answer

Information serves as a crucial input for making informed decisions in the market. Market participants who have access to relevant information can evaluate options based on a cost-benefit analysis and make better decisions. This alignment of information and decision-making can lead to a more efficient market. Options B, C, and D are incorrect because they do not reflect the positive role of information in the market.

Information Plays an Important Role in the Market Because It