A rational decision maker always chooses the option for which marginal benefit is: a. more than marginal cost. b. less than marginal cost. c. unrelated to marginal cost. d. equal to marginal cost.
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A rational decision maker always chooses the option where the marginal benefit exceeds the marginal cost. This is because, in making decisions, individuals aim to maximize their utility or satisfaction. If the additional benefit from an option surpasses the additional cost, it indicates a potentially profitable choice. In practice, this principle can be seen in various scenarios, like budgeting or investing time in activities. For example, if learning a new skill offers greater job opportunities than the hours spent studying, a rational decision maker would prioritize that learning over less beneficial tasks.