The Rational Rule for Buyers
A)compares the total benefit of all units to the total price of all units purchased.
B)compares the benefit of buying an additional unit of the item to the cost of that item.
C)only applies to buyers who are buying necessities as opposed to luxury items.
D)compares the cost of production of an item to the price of the item.

Question

Quizplus · Accepted Answer

The rational rule for buyers is to compare the benefit of buying an additional unit of the item to the cost of that item. This ensures that buyers are making a rational decision based on the value they receive compared to the price they pay. Option A is incorrect as it does not take into account the marginal cost and benefit of each unit purchased. Option C is incorrect as the rational rule applies to all types of purchases. Option D is incorrect as it is the rational rule for producers, not buyers.