Which Word Best Completes the Following Sentence? a Rational Decision

question 17

Multiple Choice

Which word best completes the following sentence? A rational decision maker always chooses the option for which marginal benefit is __________ marginal cost.

• A) less than
• B) equal to
• C) unrelated to
• D) more than

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Definitions:

Bilateral Contract

An agreement in which both parties make promises to perform certain acts or refrain from performing certain acts.

Plain-Meaning Rule

A rule of interpretation which states that words in a contract should be given their ordinary meaning.

Unambiguous

Clear and precise with only one possible interpretation or meaning.

Four Corners

The term usually relates to the geographical region in the southwestern United States where the states of Arizona, New Mexico, Utah, and Colorado meet at a single point. In a legal document context, it refers to the principle that the interpretation of the document is derived from what is within its "four corners," meaning its explicit content, without reference to external factors.