Rational Behavior Requires "Thinking at the Margin

question 112

Multiple Choice

Rational behavior requires "thinking at the margin." Which of the following is an example of this type of thinking?

• A) deciding whether a second burger is worth the extra $2
• B) deciding whether your overtime pay is worth working on Saturday (your day off)
• C) deciding whether to pay a fine for polluting the local harbor or installing antipollution machinery
• D) All of these are examples of "thinking at the margin."

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Definitions:

Electronics

The study and design of electronic devices, circuits, and systems primarily involving the flow of electrons in a vacuum, gas, or semiconductor.

Marketspace

An information- and communication-based electronic exchange environment mostly occupied by sophisticated computer and telecommunication technologies and digital offerings.

Computer-Mediated Environment

A digital space enabled by computer technology in which individuals can interact, communicate, and create or access content.