Question

4)

What is a rational economic decision?
A)
One in which there are no opportunity costs.
One in which marginal benefits exceed marginal costs.
One in which marginal costs exceed marginal benefits.
D)
One in which the benefits are unknown, but costs are low.

Answer 1

One in which marginal benefits exceed marginal costs.

Step-by-step explanation:

A ration decision implies a sensible or reasonable decision. A rational economic decision has undergone the process of comparing costs and benefits to determine the best option. A rational decision benefits outweigh or are equal to its costs.

Marginal benefit is the additional gain associated with the production or sale of one more unit, while the marginal cost is the expense of making or selling an extra product. A ration decision will have marginal benefit exceed or equal to marginal cost.