A rational person does not act unless___

CA Foundation · Business Economics · MTP · May 2026
A rational person does not act unless___
(A) A. The action is ethical.
(B) B. The action produces marginal cost that exceeds marginal revenue.
(C) C. The action produces marginal benefits that exceed marginal costs.
(D) D. The action makes money for the person.

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. The action produces marginal benefits that exceed marginal costs.

Topics: Nature & Scope of Business Economics

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