Answer:
The correct answer is letter "A": We respond to marginal benefits and marginal costs.
Explanation:
Rational Choice Theory assumes an individual will always make prudent and optimal decisions that yield the most benefits. It is the basis of most mainstream economic theories. The rational choice theory considers the marginal benefit compared to the marginal cost of individuals' decisions. It could prevent people from taking an option without analyzing what is most beneficial for them.
Answer: C. Colombia has an absolute advantage producing coffee, and Cuba has an absolute advantage producing oranges
Explanation:
From the question, we are informed that Colombia spends 2 hours producing coffee and 6 hours producing oranges, and Cuba spends 3 hours producing coffee and 1 hour producing oranges.
Since Columbia spends a lesser time producing coffee and Cuba spends a lesser time producing oranges, it means that Colombia has an absolute advantage producing coffee, and Cuba has an absolute advantage producing oranges.
When one group controls an industry or market by being the only provider, this is called MONOPOLY.
Mono - Greek monos means one or single
Poly - Greek polein means to sell.
Monopoly is a market where only one sells a certain good or service. In this type of market there is no competition thus the monopolist is not driven to improve his commodity because consumers have no other choice but to buy his product.
