A rational person does not act unless:

CA Foundation · Business Economics · MTP · September 2025
A rational person does not act unless:
(A) A. The action is ethical
(B) B. The action produces marginal costs that exceed marginal benefit
(C) C. The action makes money for the person
(D) D. The marginal benefits that exceed marginal cost

Suggested Answer and Working Notes:

Correct Answer: Option (D)

D. The marginal benefits that exceed marginal cost

Topics: Theory of Demand and Supply

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