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If People Follow the Rule of Rational Choice, on What

question 15

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If people follow the rule of rational choice, on what basis will they make their decisions?


Definitions:

Total Product

The aggregate quantity of output produced by an economic unit from a given set of inputs during a specific period of time.

Variable Cost

Costs that change in direct proportion to changes in a firm’s level of production.

Labor

Labor refers to the human effort, both physical and mental, used in the production of goods and services.

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