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 always make correct decisions.

C. The idea assumes that consumers and firms take into account the costs of their actions but ignore the benefits.

D. The idea assumes that consumers and firms take into account the benefits of their actions but ignore the costs.

Question

Mattie Moon

Business

14 August, 23:55

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 always make correct decisions.

C. The idea assumes that consumers and firms take into account the costs of their actions but ignore the benefits.

D. The idea assumes that consumers and firms take into account the benefits of their actions but ignore the costs.

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Answers (1)

Know the Answer?

Suzan · Answer 1

B. The idea assumes that consumers and firms always make correct decisions.

Explanation:

The idea is based that every economic agent, regardless of its nature people or firms make right decisions because they make rational process in every decision, with all the information available but must important suppose that the emotional factor does not exist and it allows us to make the optimal decision, to maximize the benefits and minimize the costs.