Rational ignorance is the decision NOT to
A) vote in elections.
B) acquire information because the marginal benefit of doing so exceeds the marginal cost.
C) acquire information because the marginal cost of doing so exceeds the expected marginal benefit.
D) acquire information because the marginal cost of doing so equals the expected marginal benefit.
E) follow the principle of minimum differentiation.

Question

Quizplus · Accepted Answer

Rational ignorance refers to the decision not to acquire information because the marginal cost of doing so exceeds the expected marginal benefit. In other words, one chooses not to acquire more information because the effort and time required to do so outweigh the potential benefits that may be gained from the information.

Rational Ignorance Is the Decision NOT to