In economics,we assume rational decisions are made when individuals weigh:

Question

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Rational decisions are made by weighing the opportunity costs versus the benefits of an action. Opportunity cost is the value of the next best alternative that must be given up in order to pursue a certain action. Therefore, individuals weigh the benefits of an action against the value of the next best alternative, which is the opportunity cost, in order to make rational decisions. Sunk costs, on the other hand, are costs that have already been incurred and cannot be recovered, and should not factor into future decision-making.

In Economics,we Assume Rational Decisions Are Made When Individuals Weigh