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Economists Assume That Rationality Is a Typical or Normal Human

Question 1

Multiple Choice

Economists assume that rationality is a typical or normal human behavior in decision making. To achieve an optimal result, the rational decision maker is predicted to choose additional units of a scarce item until:


A) marginal benefits are greater than marginal costs
B) marginal benefits are less than marginal costs
C) marginal benefits equal marginal costs.
D) marginal benefits are maximized.
E) marginal costs are maximized.

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