A Rational Decision Maker Takes an Action Only If the

question 90

Multiple Choice

A rational decision maker takes an action only if the

• A)marginal benefit is less than the marginal cost.
• B)marginal benefit is greater than the marginal cost.
• C)average benefit is greater than the average cost.
• D)marginal benefit is greater than both the average cost and the marginal cost.

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Definitions:

Semantics

The branch of linguistics and logic concerned with meaning, including the relations between signifiers like words, phrases, signs, and symbols and what they stand for.

Morphemes

The smallest units of language that carry meaning, including words, prefixes, and suffixes.

Syntax

The set of rules, principles, and processes that govern the structure of sentences in a given language, including word order.

Insight

The ability to understand the inner nature of things or to gain an intuitive understanding of complex situations or problems.