A Rational Decision Maker Takes an Action Only If The

question 101

Multiple Choice

A rational decision maker takes an action only if the:

• A)marginal benefit is greater than the marginal cost
• B)marginal benefit is less 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:

Capital Contributed

The amount of money or assets that shareholders have invested in a company.

Partnership Agreement

A legal document that outlines the rights, responsibilities, and shares of profits (or losses) among partners in a business venture.

Rights Of Partners

The entitlements and obligations held by partners in a partnership, including participation in profits, liabilities, and decision-making.

Articles Of Partnership

A document that specifies the rights and responsibilities of the partners in a business partnership.