Question

a rational decision maker always chooses the option for which marginal benefit is:
a. less than marginal cost.
b. unrelated to marginal cost.
c. more than marginal cost.
d. equal to marginal cost.

Explanation:

Rational decision-making in economics follows the principle that an optimal choice occurs when the additional benefit (marginal benefit) from an action matches or exceeds the additional cost (marginal cost). For a decision maker to maximize net benefit, they select the option where marginal benefit is equal to marginal cost, as this is the point where no further gains can be achieved by increasing or decreasing the action.

Answer:

d. equal to marginal cost.