what is a rational economic decision? a one in which there are no opportunity costs. b one in which marginal…
what is a rational economic decision? a one in which there are no opportunity costs. b one in which marginal benefits exceed marginal costs. c one in which marginal costs exceed marginal benefits. d one in which the benefits are unknown, but costs are low.
Answer
Brief Explanations:
In economics, a rational economic decision - maker compares marginal benefits and marginal costs. When marginal benefits exceed marginal costs, the decision is considered rational as it leads to a net gain. Opportunity costs are always present in economic decisions. If marginal costs exceed marginal benefits, it's an irrational decision. And a decision with unknown benefits is not rational just because costs are low.
Answer:
B. One in which marginal benefits exceed marginal costs