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How does rational decisions occur when the marginal benefits of an action equal or exceed the marginal costs?
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Rational decisions occur when the marginal benefits of an action equal or exceed the marginal costs?
Rational Decision making occurs when marginal benefits of an action exceed the marginal costs
A rational decisionmaker takes an action if and only if?
the marginal benefit of that action exceeds the marginal cost of that action.
What is marginal analysis?
A type of cost-benefit decision making that compares the extra benefits to the extra costs of an action
Why is marginal cost the key to economic decision?
People make decisions at the margin; they strictly measure whether the incremental benefit from the next unit of allocation is greater or equal to the marginal cost. Since marginal cost is part of the profitability of an action, the cost affects whether the next unit's return is positive or not, so it helps to determine whether that actor takes that action or not.
What is marginal change?
Small incremental adjustments to a plan of action.
Rational decisions occur when the marginal benefits of an action equal or exceed the marginal costs?
Rational Decision making occurs when marginal benefits of an action exceed the marginal costs
A rational decisionmaker takes an action if and only if?
the marginal benefit of that action exceeds the marginal cost of that action.
What is marginal analysis?
A type of cost-benefit decision making that compares the extra benefits to the extra costs of an action
What is logical decision making based on thoughtful analysis that compares the benefits and costs of an action?
Rational Choice
Why is marginal cost the key to economic decision?
People make decisions at the margin; they strictly measure whether the incremental benefit from the next unit of allocation is greater or equal to the marginal cost. Since marginal cost is part of the profitability of an action, the cost affects whether the next unit's return is positive or not, so it helps to determine whether that actor takes that action or not.
Which action illustrates rational behavior?
Rational behavior is a process based on making decisions that result in the most benefit for the individual. An executive at a company retiring early illustrates this best.
What is the term for logical decision making based on thoughtful analysis that compares the benefits and costs of an action?
rational planning
Application of calculus to business decision process?
Microeconomics, which determines much of the business decision process, looks to the margin for much of its data. What is the marginal cost of producing one more piece of output? What is the marginal cost of hiring one more employee? What is the marginal benefit of opening another store? In other words, the business decision process is not concerned with the total cost of producing all its units as much as producing just one more. In this sense, the margin is the derivative of the total cost. When the marginal benefit of something is greater than the marginal cost, the action will be followed. If the marginal cost is greater, it will not be. A company will produce more output until marginal benefit is equal to marginal cost. To maximize profits, the decisions of a company need to be made based upon this knowledge and some very complex calculus to find just want marginal costs and benefits of any given action are.
What is irreponsible?
it is a lack of a sense of responsibility - not answerable or accountable for something within one's power - not having the power for moral decisions - not capable of rational thought or action - not able to take action without supervision
What is marginal change?
Small incremental adjustments to a plan of action.
What is an additional or extra benefit associated with an action?
Marginal Benefit
What is the additional or extra benefit associated with an action?
Marginal Benefit
