A Rational Decision Maker Takes an Action If and Only

question 42

Multiple Choice

A rational decision maker takes an action if and only if

• A)the average benefit of the action exceeds the average cost.
• B)the average cost of the action exceeds the average benefit.
• C)the marginal benefit of the action exceeds the marginal cost.
• D)the marginal cost of the action exceeds the marginal benefit.

---

Definitions:

Deductive Reasoning

A reasoning method where the outcome is derived from the agreement of several statements that are usually considered accurate.

Empirical Reasoning

A method of thought that involves making conclusions based on observed and verified evidence.

Ideological Reasoning

The process of thinking that is heavily influenced by a predetermined set of beliefs or ideology.

Economic Growth

An increase in the production of goods and services over a specific period, often measured by GDP.