A rational decision maker takes an action if and only if
A) the marginal benefit of the action exceeds the marginal cost of the action.
B) the marginal cost of the action exceeds the marginal benefit of the action.
C) the marginal cost of the action is zero.
D) the opportunity cost of the action is zero.

Question

Quizplus · Accepted Answer

A rational decision maker will take an action if the marginal benefit exceeds the marginal cost, as this indicates that the action will result in a net gain.

A Rational Decision Maker Takes an Action If and Only