Asked by
Hannah Warren
on Nov 11, 2024
Verified
A rational decision maker will take only those actions for which the expected marginal benefit:
A) is positive.
B) is at its maximum level.
C) is greater than or equal to the expected marginal cost.
D) is less than the expected marginal cost.
E) exactly equals the expected marginal cost.
Expected Marginal Benefit
The additional benefit perceived by a consumer or producer from consuming or producing one more unit of a good or service.
Expected Marginal Cost
Refers to the anticipated increase in cost for producing one additional unit of a good or service.
- Learn about the presumption of rational behavior in economics and its implications on choices and decisions.
Verified Answer
WK
Learning Objectives
- Learn about the presumption of rational behavior in economics and its implications on choices and decisions.