According to the rule of rational choice, what must occur for an individual to be willing undertake an activity?
A) The expected marginal benefits must be less than the expected marginal costs.
B) The total costs must exceed total benefits.
C) The expected marginal benefits must be greater than the expected marginal costs.
D) The expected marginal benefit must equal the expected marginal cost.

Question

Quizplus · Accepted Answer

According to the rule of rational choice, an individual will be willing to undertake an activity only if the expected marginal benefits are greater than the expected marginal costs. This means that the individual expects to gain more benefits from the activity than the costs they will incur. Therefore, choice C is the best answer.

According to the Rule of Rational Choice, What Must Occur