Which of the Following Best Defines Rational Behavior

question 127

Multiple Choice

Which of the following best defines rational behavior?

• A) analyzing the total costs of a decision
• B) analyzing the total benefits of a decision
• C) undertaking an activity as long as the total benefit of all activities exceeds the total cost of all activities
• D) undertaking activities whenever the marginal benefit exceeds the marginal cost

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Definitions:

Land Account

An account in the ledger that represents the cost of land owned by a business.

Parking Lot

An outdoor area or a structure designated for parking vehicles.

Title Fees

Fees associated with the transfer of ownership or establishing the title of a property, often incurred during buying or selling.

Property, Plant, Equipment

Tangible long-term assets used in the operation of a business, such as buildings and machinery.