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1 year ago

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

1 answer:

7 0

The only time a rational decision maker will choose an action is when the marginal utility of the activity is greater than the marginal cost of the action. Option A

This is further explained below.

<h3>A rational decisionmaker takes an action if and only if:?</h3>

The marginal cost is a term that refers to the change in the total cost that takes place as a direct consequence of an increase in the quantity of a product or service that is produced.

In the field of economics, this phrase refers to the amount of money that must be spent in order to produce one more unit of output.

In conclusion, if the marginal benefit of the action is greater than the marginal cost of the action, then the action will be conducted by a rational actor if there is a positive expectation that the action will have a net positive outcome. Alternative A

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One of the most important things is called a free enterprise economy

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3 years ago

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Shtirlitz [24]

Answer:

Explanation:

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4 years ago

How auto insurance companies manage risk ?<br>

Nana76 [90]

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Answer:

Insurance companies manages risk by balancing the low-risk drivers and the high-risk drivers. Insurance would charge higher rates for high risk drivers.

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Explanation:

Insurance companies manages risk by sorting out the people who have a lower chance of risking a crash, with people who have a higher chance of risking a crash. They do this by charging low rates to the people that have a lower chance of causing a risk. They charge them low because they are trustworthy, and don't need to rack up a lot of money quick if they ever get into a crash. Remember, insurance makes people pay monthly so they could use that money in a accident.

But, this is different for people with higher risk. People that have a high risk of getting into an accident would be charged with a higher rate than people with lower risk. Insurance companies charge them with higher rates because since higher risk drivers get are more likely to get into an accident, insurance companies want to make sure that they can get the money for the accident as soon as possible. Insurance companies are the ones that pay for the accident, and that's why most places require you to have insurance while you drive.

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4 0

4 years ago

Read 2 more answers

Select the incorrect statement regarding postaudits of capital investment decisions. Multiple Choice A postaudit should be condu

Finger [1]

Answer:

A post audit is only necessary for a capital investement selected using a technique that does not consider the time value of money

Explanation:

A post audit defines the analysis of an outcome with respect to the capital budgeting investment. It is to be conducted at the closing of the period. Also it measures whether the project should be accepted or rejected via details assumption analysis but also it considered the times value of the money

Therefore the above statement should be considered

And, hence, the other options should be considered as wrong

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3 years ago

Can someone describe Microeconomics and Macroeconomics in their own words?

Vikentia [17]

Answer:

microeconomics: The study of the behavior of individual households and firms in making decisions on the allocation of limited resources. Macroeconomics: The study of the performance, structure, behavior, and decision-making of an economy as a whole, rather than individual markets.

Explanation:

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4 years ago