The assumption that individuals act rationally implies that:

A) people think only of themselves and disregard the well-being of others.
B) people undertake all those activities that yield benefits to themselves.
C) people only consider the costs of an activity to decide whether it is worthwhile.
D) the greater the cost of a charitable deed to a benefactor,the more likely he or she is to perform that deed.
E) people implicitly calculate the costs and benefits of an activity to decide if it is worthwhile.

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Shelby Butler · Accepted Answer

Final Answer : E, Explanation :  The assumption that individuals act rationally implies that people implicitly calculate the costs and benefits of an activity to decide if it is worthwhile. It does not necessarily mean that individuals act selfishly or disregard the well-being of others. Rational behavior can include taking into account the well-being of others or even performing charitable deeds if the benefits outweigh the costs for the individual.

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