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Maslowich
3 years ago
15

Rational economic decision makers will make a change only if: a. ​their expectations are correct. b. ​there are no costs involve

d. c. ​there is no uncertainty about the results of the change. d. ​the change is free of risk. e. ​the expected marginal benefit exceeds expected marginal cost.
Business
1 answer:
STALIN [3.7K]3 years ago
5 0

Answer:

e. the expected marginal benefit exceeds expected marginal cost

Explanation:

Rational decision making refers to deciding in favor of those decisions which yield favorable results. The decision making process takes into account rational, unbiased objective thinking before opting for a course of action.

Marginal benefit refers to how much a consumer is willing to pay to consume an additional unit of output.

Marginal cost refers to the additional cost incurred when another unit of an output is produced.

A rational decision maker makes a change only in the scenario wherein, the marginal benefits derived from consuming a product exceed the marginal cost associated with the product.

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Explanation:

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Caitlin, Chris, and Molly are partners and share income and losses in a 3:4:3 ratio. The partnership’s capital balances are Cait
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3 years ago
Your boss leaves you a note, asking you to determine the present value of a $1,200,000 payment to be made in six years assuming
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Answer:

so value of the mistake is $311685.71

Explanation:

given data

present value = $1,200,000

time = 6 year

discount rate = 18%

discount rate = 8%

to find out

What is the dollar value of the mistake

solution

we get here present value that is express as for both rate that is

present value = \frac{FV}{(1+r)^t}

put here value

present value =  \frac{1200000}{(1+0.18)^6}

present value 1 = $444517.85

and

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present value 2 = $756203.55

so

difference is $756203.55 - $444517.85

difference is = $311685.71

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7 0
3 years ago
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3 years ago
Read 2 more answers
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