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Rational Behavior Requires Thinking at the Margin

Question 42

Multiple Choice

Rational behavior requires thinking at the margin. Which example represents this type of thinking?


A) deciding whether a second burger is worth the extra $2
B) deciding whether the overtime pay is worth working on your day off
C) deciding whether to pay a fine for polluting the local harbor or installing antipollution machinery
D) All of these examples represent thinking at the margin.

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