When economists say consumers,firms,or investors are behaving rationally,they mean

Question

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When economists say consumers, firms, or investors are behaving rationally, it means they are taking actions to reach their goals, given the available information. This does not necessarily mean that they have significant investment expertise or consistently avoid poor performing stocks, but rather that they are making decisions based on their current understanding of the situation.

When Economists Say Consumers,firms,or Investors Are Behaving Rationally,they Mean