Question

Which of the following statements about the idea that people are rational is​ correct? A. The idea assumes that consumers and firms use all available information as they act to achieve their goals. B. The idea assumes that consumers and firms take into account the costs of their actions but ignore the benefits. C. The idea assumes that consumers and firms always make correct decisions. D. The idea assumes that consumers and firms take into account the benefits of their actions but ignore the costs.

Answer 1

Answer:

A. Consumers and firms use all available information as they act to achieve their goals

Explanation:

Information is a value, maybe the most important. It´s also scarce and expensive: business pay fortunes to smart men.

And the most worthy information is the one that allows a person to predict the futuro. For instance, who knows what will be the price of oil in one year.

Usually available information is not enough, people cannot acces to a better option, therefore mistakes are made, even throught and after "rational" reasoning. So, people act "rationally", in spite of goal is not always achieved.