According to the rule of rational choice, under what circumstances will you engage in more of an activity?
A) when the additional cost incurred as a result of the activity exceeds the additional benefit received
B) when the opportunity cost of your time is very low
C) when the total benefit from that activity exceeds the total cost of the activity
D) when the additional benefit received as a result of the activity exceeds the additional cost incurred

Question

Quizplus · Accepted Answer

According to the rule of rational choice, people engage in more of an activity when the additional benefit received as a result of the activity exceeds the additional cost incurred. This means that people will choose to engage in an activity as long as the benefit they receive is greater than the cost they have to pay for it. Therefore, D is the correct answer.

According to the Rule of Rational Choice, Under What Circumstances