According to the rule of rational choice, an individual will undertake an activity as long as:
A)the expected marginal benefits are less than the expected marginal costs.
B)the expected marginal benefits are greater than the expected marginal costs.
C)total costs exceed total benefits.
D)total benefits exceed total costs.
E)the expected average benefits are greater than the expected average costs.

Question

Quizplus · Accepted Answer

According to the rule of rational choice, an individual will undertake an activity as long as the expected marginal benefits are greater than the expected marginal costs. This means that the individual expects to receive more benefits than costs from the activity. Therefore, choice B is the correct answer.

According to the Rule of Rational Choice, an Individual Will