A Rational Decision Maker Takes an Action Only If the

question 90

Multiple Choice

A rational decision maker takes an action only if the

• A)marginal benefit is less than the marginal cost.
• B)marginal benefit is greater than the marginal cost.
• C)average benefit is greater than the average cost.
• D)marginal benefit is greater than both the average cost and the marginal cost.

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Definitions:

Italy

A country located in southern Europe, known for its rich history, culture, art, and contributions to cuisine, fashion, and science.

Nominal Wages

The wages paid to employees measured in current money, without adjustment for inflation or purchasing power.

Price Level

An index that measures the average level of prices of goods and services in an economy over a period of time.

Real Wages

Wages adjusted for inflation, reflecting the true purchasing power of income received by workers.