According to the Rule of Rational Choice, What Must Occur

question 134

Multiple Choice

According to the rule of rational choice, what must occur for an individual to be willing undertake an activity?

• A) The expected marginal benefits must be less than the expected marginal costs.
• B) The total costs must exceed total benefits.
• C) The expected marginal benefits must be greater than the expected marginal costs.
• D) The expected marginal benefit must equal the expected marginal cost.

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Definitions:

Null Hypothesis

A statement in statistics that there is no significant difference or effect, and any observed difference is due to chance.

Multinomial Experiment

An experiment that extends binomial trials, allowing for more than two possible outcomes for each trial.

Observed Frequencies

The number of occurrences or instances of data points in specified categories or intervals as collected from experiments or surveys.

Consumer Panel Preferences

Insights or tendencies displayed by a group of consumers, often collected for market research.