A Rational Decision Maker Takes an Action If and Only

question 9

Multiple Choice

A rational decision maker takes an action if and only if

• A) the marginal benefit of the action exceeds the marginal cost of the action.
• B) the marginal cost of the action exceeds the marginal benefit of the action.
• C) the marginal cost of the action is zero.
• D) the opportunity cost of the action is zero.

---

Definitions:

Emerging Businesses

Companies in the early stages of operation, often characterized by rapid growth and development in its sector.

Angel

A lender, usually a successful entrepreneur, who loans money to help new businesses.

Assets

Resources owned or controlled by a business, considered valuable because they can be used to produce goods, provide services, or generate revenue.

Venture Capitalists

Investors who provide capital to startup companies and small businesses with perceived long-term growth potential in exchange for equity.