A Rational Decision Maker Always Chooses the Option for Which

question 32

Multiple Choice

A rational decision maker always chooses the option for which marginal benefit is:

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

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Definitions:

Assets

Resources owned by a business which are expected to provide future economic benefits.

Landlord

An owner of property, such as land or buildings, who leases or rents it to another party, known as a tenant.

Journalize

The act of recording business transactions in the journal of an accounting system, marking the first step in the accounting cycle.

Normal Balance

The side (debit or credit) of an account that is typically increased; varies depending on the account type.