Answer:
C) John's decision on how to allocate his time is consistent with the rationality assumption since the decision is intended to make him better off.
Explanation:
One of the pillars of modern economic theory is that individuals are rational and they will try to maximize their benefit at the lowest possible cost. Since resources are finite, then all our decisions are made on the margin. What is the marginal benefit that we can obtain from purchasing something at its marginal cost (marginal cost = sales price for an individual).
In this case, John is trying to maximize his utility, first he will go to the gym which probably provides a larger benefit to him, and then he is going to study (which also provides a benefit). He could have chosen to either go out to somewhere else or just stayed home and watch TV, play videogames, etc., but apparently these activities do not provide him enough benefits but represent a large cost in time.
The law of supply<span> is a microeconomic </span>law which says<span> "...all other </span>factors<span> being equal, as the price of a good or service increases, the quantity of goods or services that suppliers offer </span>will<span> increase, and vice versa..."</span>
Michael Porter, Harvard Business School professor said that strategic position means to preserve what distinctive about a company to achieve sustainable competitive advantage.
Strategic positioning helps determine where a business stands against its competitors, consumers, and the market. Companies that are unique and stand out by their customer connections often have a greater change at competitive advantage and a strong strategic positioning.
