A rational person does not act unless ?
Correct answer: C. The action produces marginal benefits that exceed marginal costs.
- A. the action is ethical
- B. The action produces marginal costs that exceed marginal benefits.
- C. The action produces marginal benefits that exceed marginal costs.
- D. The action makes money for the person.
Explanation
A rational person undertakes an action when its marginal benefit is greater than its marginal cost, because the additional gain then exceeds the additional sacrifice. Ethical or monetary considerations are not the defining condition in this economic rule.
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