When will a rational decision maker take action?

Question

Quizplus · Accepted Answer

A rational decision maker will take action when the marginal benefits of that action are equal to or greater than the marginal costs. This ensures that the decision maker is maximizing their utility and making the most efficient use of their resources. If the marginal costs exceed the marginal benefits, then taking the action would result in a net loss, and if the marginal benefits exceed the marginal costs, then not taking the action would result in a missed opportunity for gain. Therefore, choice C is the best choice as it reflects the optimal decision-making criteria for a rational decision maker.

When Will a Rational Decision Maker Take Action