The Classical or Rational Model Is ________,Which Means That It

question 98

Multiple Choice

The classical or rational model is ________,which means that it specifies how decisions should be made.

• A)heuristic
• B)prescriptive
• C)intuitive
• D)satisficing
• E)legal

---

Definitions:

Efficient Mix

The most advantageous combination of goods and services that can be produced and distributed with the available resources and technology, maximizing overall welfare.

Equate Price

The action of setting two or more goods or services to have the same price.

Marginal Cost

The outlay involved in the creation of an additional unit of a good or service.

Pareto Efficient

An economic state where resources are allocated in a way that it is impossible to make any one individual better off without making at least one individual worse off.