Rational choice requires that opportunity cost be
A) ignored in making a decision.
B) considered for individual choices, but not for societal choices.
C) computed, but not actually used in making a decision.
D) considered as part of making a decision.
E) used as the sole decision criterion.

Question

Quizplus · Accepted Answer

Rational choice theory posits that individuals make decisions by considering the opportunity costs, which are the benefits of the next best alternative foregone. This means opportunity costs should be considered as part of the decision-making process.

Rational Choice Requires That Opportunity Cost Be