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11 October, 12:26

Rational behavior requires thinking at the margin. which example represents this type of thinking?

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  1. 11 October, 15:31
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    The examples are:

    -deciding whether a second burger is worth the extra $2

    -deciding whether the overtime pay is worth working on your day off

    -deciding whether to pay a fine for polluting the local harbor or installing antipollution machinery

    In rational behavior, our decision-making process is always based on which decision give the maximum/optimal benefit for use, after deducting all possibilities with a logical approach.

    All the actions above represents this very concept of rational behavior.
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