Economics assumes people and firms:
A. are rationalare rational, respond to incentives, and make decisions by comparing marginal benefits with marginal costs.
B. use all available information to achieve their goals, respond to incentives, and make decisions by continuing any activity up to the point where the marginal benefit equals zero.
C. use all available information to achieve their goals, use all available information to achieve their goals ,respond to incentives, and make decisions by comparing total benefits with total costs.
D. are rational, respond to incentives, and make all-or-nothing decisions.
E. always make the best decisions, always make the best decisions, respond to incentives, and make decisions by comparing marginal benefits with marginal costs.
Economics assumes people and firms:
A. are rationalare rational, respond to incentives, and make decisions by comparing marginal benefits with marginal costs.
B. use all available information to achieve their goals, respond to incentives, and make decisions by continuing any activity up to the point where the marginal benefit equals zero.
C. use all available information to achieve their goals, use all available information to achieve their goals ,respond to incentives, and make decisions by comparing total benefits with total costs.
D. are rational, respond to incentives, and make all-or-nothing decisions.
E. always make the best decisions, always make the best decisions, respond to incentives, and make decisions by comparing marginal benefits with marginal costs.