A Rational Decision Maker Will Engage in More of an Activity

question 148

Multiple Choice

A rational decision maker will engage in more of an activity only if the marginal benefit ot the additional activity

• A)is positive
• B)is at its maximum level
• C)is greater than or equal to the expected marginal cost
• D)is less than the expected marginal cost
• E)exactly equals the expected marginal cost

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Definitions:

Drawee

The party directed by a draft or check to pay a certain amount of money, typically a bank.

Payee

The individual or entity to whom money is paid or owes to be paid.

Negotiable Instrument

A negotiable instrument is a written document guaranteeing the payment of a specific amount of money, either on demand or at a set time, with the characteristic of being transferable by endorsement or delivery.

Validity

Validity refers to the state of being legally sound, effective, or binding; it is the quality of conforming to law or fact.