When consumers or businessmen stop collecting information to make decisions at the point where marginal cost of data collection equals the marginal utility of the data, economists would call the decisions based on existing data
A. perfect decisions.
B. optimally imperfect decisions.
C. joint decisions.
D. rent seeking.
Answer: B
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Long-run equilibrium under monopolistic competition and perfect competition is similar in that
A) price equals marginal revenue. B) price equals marginal cost. C) firms produce at the minimum point of their average cost curves. D) firms break even.
With direct finance, funds are channeled through the financial market from the ________ directly to the ________
A) savers, spenders B) spenders, investors C) borrowers, savers D) investors, savers
An increase in the nominal interest rate increases the quantity of credit card services because
A) bank profits go up. B) of intertemporal substitution. C) the opportunity cost of making transactions with money has risen. D) the substitution effect is greater than the income effect.
According to the classical dichotomy, which of the following is not influenced by monetary factors?
a. unemployment b. the price level c. nominal interest rates d. All of the above are correct.