A rational person does not act unless the action
A) yields marginal benefits that are greater than marginal costs
B) yields marginal costs that are greater than marginal benefits
C) results in taxes for the person
D) results in losses for the person

Question

Quizplus · Accepted Answer

A rational person acts when the marginal benefits of an action exceed the marginal costs, as this indicates a net gain from the action. Choices B, C, and D typically do not motivate rational actions as they imply a net loss or burden.

A Rational Person Does Not Act Unless the Action