A rational decisionmaker
a. ignores marginal changes and focuses instead on "the big picture.".
b. ignores the likely effects of government policies when he or she makes choices.
c. takes an action only if the marginal benefit of that action exceeds the marginal cost of that action.
d. takes an action only if the combined benefits of that action and previous actions exceed the combined costs of that action and previous actions.
c
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What is the difference between wage differentials caused by differences in human capital and compensating wage differentials?
What will be an ideal response?
Refer to the above figure. If the economy is currently operating at point C, then there is
A) a stable long-run equilibrium situation. B) a recessionary gap. C) an inflationary gap. D) unemployment.