Which of the Following Statements Reflects a Key Assumption of the Rational

question 2

Multiple Choice

Which of the following statements reflects a key assumption of the rational choice theory?

• A) The likelihood of an offender being caught for a first offence is relatively high.
• B) Offenders have a clear understanding of the criminal justice system.
• C) Risks and rewards are analyzed by offenders.
• D) The police and the offender use similar strategies when committing and tracking crime.

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Definitions:

Economic Profit

Economic profit is the total revenue of a company after subtracting both the explicit and implicit costs, including opportunity costs, reflecting the true profitability of a business.

ATC

Average Total Cost; it's the sum of all production costs divided by the quantity of output produced, representing the per-unit cost of production.

AVC

AVC, or Average Variable Cost, is the cost per unit of variable inputs divided by the quantity of output produced.

Variable Cost

Costs that change in proportion to the level of production or sales volume.