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

Question

Quizplus · Accepted Answer

A rational decision maker will only take those actions where the expected marginal benefit (EMB) is greater than or equal to the expected marginal cost (EMC). This is because taking a decision when EMB is less than EMC will result in a negative outcome. Therefore, Option C is the most appropriate choice.

A Rational Decision Maker Will Take Only Those Actions for Which