The Rule of Rational Choice Suggests That You Will Engage

question 29

Multiple Choice

The rule of rational choice suggests that you will engage in more of an activity if:

• A)the total benefit from that activity exceeds the total cost of the activity.
• B)the opportunity cost of your time is very low.
• C)the additional cost incurred as a result of the activity exceeds the additional benefit received.
• D)the additional benefit received as a result of the activity exceeds the additional cost incurred.
• E)the additional cost incurred as a result of the activity is equal to the average cost of the activity.

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Definitions:

Economy of Scope

Cost advantages that businesses experience by producing a variety of products rather than specializing in a single output.

Range of Products

The variety of different items that a company offers for sale to its customers.

Collective Agreements

Contracts made between employers and a group of employees, often represented by a union, that determine the terms of employment, including wages, working hours, and working conditions.

Protocols

Defined sets of rules and conventions for communications or procedures within a particular system or realm of activity.