Matching ​Match Each of the Following Situations with the Stage of of the Rational

question 83

Multiple Choice

Matching
​Match each of the following situations with the stage of the rational approach to decision making it most clearly illustrates.
-​devise a contingency plan

• A)​Bob looks up business school rankings to determine which schools would consider his GPA and GMAT score competitive.
• B)​Bob decides which business schools he'd like to attend.
• C)If all of the business schools he applies to reject him, Bob will try to raise his GMAT score and apply again next year.
• D)​Bob completes and sends out applications to the business schools he'd like to attend.
• E)​Bob wants to go to a good business school.
• F)After determining which high-quality schools he has a reasonable shot of getting into, Bob uses a combination of factors -- price, location, and teacher ratings -- to compare them.

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Definitions:

Demand Curve

A graphical representation of the relationship between the price of a good and the quantity of the good that consumers are willing to buy.

Marginal Cost

The increment in cost due to the manufacture of an additional product or service unit.

Price Elasticity

A concept related to elasticity of demand, specifically measuring how much the quantity demanded of a good responds to changes in its price.

Marginal Cost

The expenditure associated with creating a subsequent unit of a product or service.