Question

A rational decisionmaker takes an action if and only if the marginal cost exceeds the marginal benefit.

a. True
b. False

Answer 1

False. A rational decision maker will make sure the decisions they make are to the best of their ability and are rational in nature. They want to make sure they pick the right decision for their situation but it does not always mean it is because marginal cost exceeds the marginal benefit. Marginal cost is the cost that is added when an organization produces one more unit of a product or service. Marginal benefit is the benefit that is received from producing one more unit of a product or service.

Answer 2

The answer is false. A rational decision maker does not only takes an action if and only if the marginal cost exceeds the marginal benefit.
The rational decision maker has a multi-step process, from problem identification through the solution, for making logically sound decisions.