Sensible buyers or sellers will want to continue acquiring information
A) as long as the additional information extends their choices.
B) as long as the anticipated additional benefit exceeds the additional cost of doing so.
C) as long as they can be assured of acquiring correct information.
D) indefinitely, because more information is better than less.
B
You might also like to view...
If a market is allowed to adjust freely to its equilibrium price and quantity, then an increase in demand will
a. increase producer surplus. b. reduce producer surplus. c. not affect producer surplus. d. Any of the above are possible.
There is a concern that carbon emissions that are a byproduct of the burning of coal and other fuels contributes to global warming. One proposed solution is to tax the use of these fuels based on their carbon content. The following table gives information on the demand and supply of coal: Price ($/ton)400 350 300 250 200 Quantity demanded 10 12 14 16 18 Quantity supplied 18 16 14 12 10 What will be the free-market price and quantity, and what will be the price and quantity if the government requires suppliers to pay a $100 tax for each ton of coal produced?
What will be an ideal response?