The Economic Decision Rule Is to Undertake an Action Only

question 117

True/False

The economic decision rule is to undertake an action only when the marginal benefits of that action are greater than its total costs.

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Definitions:

Price

The financial commitment expected, necessary, or made as payment for an article.

Miles

A unit of distance measuring 5280 feet or approximately 1.609 kilometers.

Inferior Good

A type of good whose demand decreases as the income of consumers increases, opposite to normal goods.

Normal Good

A type of good for which demand increases when income increases, and falls when income decreases, but price remains constant.