All of the Following Are Elements of Rational Choice Theory

question 21

Multiple Choice

All of the following are elements of rational choice theory EXCEPT:

• A) interest, especially self-interest.
• B) sentiments.
• C) the quest for personal gain or advantage.
• D) a hidden agenda among rational actors.

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Definitions:

DOL

Degree of Operating Leverage; a measure of a company's fixed costs as a percentage of its total costs, indicating how earnings before interest and taxes (EBIT) change in response to a change in sales volume.

Contribution Margin

The amount of revenue remaining after deducting variable costs, used to cover fixed costs and generate profit.

Variable Cost

Expenses that vary depending on the amount of products or services a company generates.

Contribution

The amount of money or resources that an individual or entity provides towards a particular project, investment, or cause.