When Does a Rational Decision Maker Take an Action

question 2

Multiple Choice

When does a rational decision maker take an action?

• A) only if the marginal benefit is less than the marginal cost
• B) only if the marginal benefit is greater than the marginal cost
• C) only if the average benefit is greater than the average cost
• D) only if the marginal benefit is greater than both the average cost and the marginal cost

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Definitions:

Syllogism

A syllogism is a form of logical argument that applies deductive reasoning to arrive at a conclusion based on two propositions that are asserted or assumed to be true.

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The emotional state or atmosphere that a work of art, piece of literature, or a particular situation evokes.

Syllogism

A form of deductive reasoning that consists of a major premise, a minor premise, and a conclusion.