In real life scenarios, when firms face profit maximizing decisions in the short and long runs, how often are they able to obtain information that is updated enough, and accurate enough for their profit maximizing decision to be the "best" decision for the allocation of the firms resources?
In fact, firms rarely know the exact shape of the demand curve they face. "Imperfect information" is a general term used to describe a situation in which an economic decision-maker does not have all the information it needs to make the best decision.
Firms have several choices in these circumstances. Finding good information is usually a matter of investing time and moeny in pursuing it. Many ...
The availability of information needed for profit maximization.