A Rational Decision Maker Takes an Action If and Only

question 9

Multiple Choice

A rational decision maker takes an action if and only if

• A) the marginal benefit of the action exceeds the marginal cost of the action.
• B) the marginal cost of the action exceeds the marginal benefit of the action.
• C) the marginal cost of the action is zero.
• D) the opportunity cost of the action is zero.

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Definitions:

Agreeableness

A personality trait that reflects how cooperative, kind, and friendly an individual is towards others.

Narcissistic

A personality trait characterized by an inflated sense of self-importance, a deep need for excessive attention and admiration, combined with a lack of empathy for others.

Neurotic

A term describing individuals who are prone to emotional instability, anxiety, and other psychological stresses.

Conscientiousness

A personality trait characterized by being diligent, careful, and organized.