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:

Conceptual Model

A conceptual model is a theoretical structure that explains various concepts and the relationships among them, serving as a framework for understanding phenomena.

Paradigm

A pattern or model of something, or a set of concepts and practices that defines a way of understanding and doing things in a particular domain.

Phenomenon

An observable event or fact that can be scientifically described or explained.

Interrelated

Elements or factors that are connected to one another in such a way that changes in one may affect the others.