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 expected costs exceed total expected benefits.
D)total expected benefits exceed total expected costs.

Question

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 expected costs exceed total expected benefits.
D)​total expected benefits exceed total expected costs.

Quizplus · Accepted Answer

The rule of rational choice suggests that an individual will undertake an activity as long as the expected marginal benefits are greater than the expected marginal costs. This means that the benefits of the activity outweigh the costs and the individual is likely to make a rational choice in favor of the activity. Options A, C, and D are all incorrect as they suggest that the costs outweigh the benefits, which would not be a rational choice.

According to the Rule of Rational Choice, an Individual Will