QUESTION 36 2 pointsSave Answer Which of the following is NO

QUESTION 36 2 pointsSave Answer Which of the following is NOT true about rational individuals? A. Rational people do not consider sunk costs in the decision-making process OB. Rational people make decisions by comparing average benefits and average costs OC. Rational people have well- defined goals OD. Rational people make decisions by comparing marginal benefits and marginal costs

Solution

Ans:

Option B

Rational people make decisions by comparing average benefits and average costs.

As per rational decision making, individuals always make prudent and logical decisions which provide the greatest benefit. Hence it is not true that rational people make decisions by comparing average benefits and average costs.