If people follow the rule of rational choice, they will choose options that they think will:
A)create more average benefits than average costs.
B)create more additional costs than additional benefits.
C)create equivalent additional benefits and additional costs.
D)create more additional benefits than additional costs.
E)create more average costs than average benefits.

Question

If people follow the rule of rational choice, they will choose options that they think will:​
A)create more average benefits than average costs.
B)create more additional costs than additional benefits.
C)create equivalent additional benefits and additional costs.
D)create more additional benefits than additional costs.
E)create more average costs than average benefits.

Quizplus · Accepted Answer

The rule of rational choice suggests that individuals will choose options that provide more additional benefits than additional costs. This implies that the benefits should outweigh the costs or alternatively, the marginal utility gained from the option chosen should be positive. Therefore, option D fits the description and is the best choice.

If People Follow the Rule of Rational Choice, They Will