ECONOMICS
TECHNOLOGY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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suppliers lower their prices to increase demand
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marginal benefits of an action equal or exceed the marginal costs
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a budget is used for spending and saving decisions
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command economies answer the three basic questions
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Detailed explanation-1: -If the marginal benefit of an activity exceeds the marginal cost, the decision maker will gain by increasing the activity. If the marginal cost of an activity exceeds the marginal benefit, the decision maker will gain by reducing the activity.
Detailed explanation-2: -Explain the rational decisions occur when the marginal benefits of an action equal or exceed the marginal costs. Decision makers compare opportunity cost and benefits. Once the cost outweighs the benefits, no more units should be added.
Detailed explanation-3: -Rational behavior is the cornerstone of rational choice theory, a theory of economics that assumes that individuals always make decisions that provide them with the highest amount of personal utility. These decisions provide people with the greatest benefit or satisfaction given the choices available.
Detailed explanation-4: -When the marginal benefit is greater than the marginal cost people will receive more benefits with per unit output as compared to change in per-unit cost.