A rational buyer or seller will continue
to acquire information
as long as the information is
as long as the additional information
extends his choices.
until the additional cost of getting
information exceeds the additional benefit of the
From an economic point of view, the best
amount of police protection is the amount
there is no more crime.
the total benefit of police protection
equals its total cost.
the average benefit of police protection equals its
the marginal benefit of police protection equals its