A Rational Decision Maker Takes an Action Only If the

question 90

Multiple Choice

A rational decision maker takes an action only if the

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

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Definitions:

Average Product

Calculating the efficiency of input by dividing the entire production by the volume of input.

Average Total Cost

The total cost of production divided by the quantity produced, also known as cost per unit.

Microsoft Windows

An operating system developed by Microsoft Corporation, widely used in personal computers and devices.

Kodak Disc

A film format introduced by Kodak in the 1980s for still photography, using a disc-shaped film cassette, now mostly obsolete.