The rational addiction model of Gary Becker and Kevin Murphy contends that:
A) addicts are irrational and do not consider the full costs of using addictive substances.
B) consumers weigh the benefits of using addictive substances along with their full costs.
C) standard economic models are not equipped to address socially destructive behavior.
D) prices play no role in the decisions to use addictive substances.

Question

Quizplus · Accepted Answer

The rational addiction model by Gary Becker and Kevin Murphy posits that consumers of addictive substances make rational decisions by weighing the benefits against the full costs, including future consequences, of using such substances.

The Rational Addiction Model of Gary Becker and Kevin Murphy