A rational person does not act unless:
A) The action is ethical.
B) The action produces marginal costs that exceed marginal benefits.
C) The action produces marginal benefits that exceed marginal costs.
D) The action makes money for the person.
E) None of these answers.

Question

Quizplus · Accepted Answer

A rational person weighs the costs and benefits of their actions, and will only act if the benefits outweigh the costs. Therefore, choice C is the correct answer as it states that the action produces marginal benefits that exceed marginal costs.

A Rational Person Does Not Act Unless