Answer to Question 1
Information is costly to obtain. If the marginal cost of obtaining the information exceeds its marginal benefit, the individual would be better off by not obtaining the information. It is inefficient to acquire the information because the marginal benefit from the information does not make up for the marginal cost of obtaining it.
Answer to Question 2
People are willing to pay for information so long as the marginal cost is less than or equal to its marginal benefit. For instance, consumers are willing to purchase information that has a marginal benefit to them that exceeds the price they must pay. Consumers might be willing to purchase information about the price(s) of large-ticket goods and services that are of interest. Workers might well be interested in buying information about salaries paid in occupations that interest them or salaries paid their co-workers. Employers are willing to buy information about the average salary offer given to college graduates with different majors.
Cultures Ideal Body Types
The Number of Children Americans Think Are Ideal
Inefficient irrigation wastes water
Conventional cars are extremely inefficient
The production of electricity from coal is inefficient
For the circuit in Figure 1, assume ideal diodes. The peak inverse voltage is approximately