A Person Behaving Rationally Will

question 11

Multiple Choice

A person behaving rationally will:

• A)always avoid illegal actions.
• B)explain or rationalize his or her decision
• C)refrain from normative analysis and base his or her decisions on facts.
• D)consider the future consequences of his or her behavior.
• E)never face scarcity

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Definitions:

Firm

A business organization, such as a corporation, partnership, or sole proprietorship, that sells goods or services.

Pure Competition

A market setup where numerous small companies manufacture the same products without any one of them having the power to affect the market pricing.

Market Models

Theoretical frameworks that describe how different market structures operate, including competition levels and price setting.

Market Structures

Describes the classification of markets based on the number of firms, the type of products offered, and the level of competition, including perfect competition, monopolistic competition, oligopoly, and monopoly.