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:

Cum Div. Basis

A term indicating that a stock is trading with the right to receive the most recently declared dividend, as opposed to "ex-dividend" where the right is not included in the purchase.

Pre-acquisition Entry

A journal entry made to record the financial impacts of acquiring company interest or assets before full acquisition or control is obtained.

Declared Dividend

A payment authorized by a company’s board of directors to be distributed among shareholders out of the company’s earnings.

Business Combination Entries

The journal entries recorded to account for the consolidation of entitles under common control, reflecting their assets, liabilities, and any non-controlling interest.