If a person gives a gift to another person,an economist would say that it is because

Question

Quizplus · Accepted Answer

According to the economic principles of rational self-interest, a person will engage in an action only if the marginal benefit is greater than or equal to the marginal cost. In the case of gift-giving, the person giving the gift is likely to receive some satisfaction or benefit from seeing the recipient's reaction and happiness, which outweighs the marginal cost of purchasing or making the gift. Therefore, the economist would say that the person is giving the gift because the marginal benefit is at least as great as the marginal cost.

If a Person Gives a Gift to Another Person,an Economist