The rule of rational choice:
A)requires the availability of complete information before decisions can be made.
B)can only be applied in business decisions.
C)involves "marginal thinking."
D)is the basis on which only greedy people make decisions.
E)requires the availability of information on only the average benefits and costs of an activity.

Question

Quizplus · Accepted Answer

The rule of rational choice involves "marginal thinking", where individuals make decisions based on weighing the marginal benefits and costs of an activity. This can be applied in various decision-making scenarios, not just business decisions. The rule also does not require individuals to have complete information, but rather the relevant information needed to make a decision. Lastly, the rule does not solely apply to greedy individuals, but instead can be utilized by anyone making decisions.

The Rule of Rational Choice