Which principle of economics suggests that a rational decision-maker takes action if and only if the marginal benefit of the action exceeds the marginal cost? Law of demand Law of supply Concept of elasticity Principle of marginal analysis

A rational decision maker takes an action if and only if:Group of answer choicesthe net benefit is negativethe marginal benefit exceeds the marginal costthey do not face any trade-offsthe opportunity cost is low

The law of demand states that, other things equal,price and quantity demanded are inversely related.the larger the number of buyers in a market, the lower will be the product price.price and quantity demanded are directly related.consumers will buy more of a product at high prices than at low prices.Purposeful behavior suggests thatdecisions are generally not random or chaotic.people never put the well-being of others above their own.decisions are unaffected by emotion.people are never impulsive.Economics involves marginal analysis becausemost decisions involve changes from the present situation.marginal benefits always exceed marginal costs.marginal costs always exceed marginal benefits.much economic behavior is irrational.When producers do not produce the efficient amount of a product because they are unable to charge consumers what they need to do so, then there exists ademand-side market failure.supply-side market failure.competitive market.monopolistic market.If economic theories are solidly based on relevant facts, then appropriate economic policy becomes obvious and uncontroversial.truefalseDemand-side market failures occur whendemand curves underreport how much consumers are willing to pay for a good or service.demand curves don't reflect the full cost of producing a good or service.government imposes a tax on a good or service.a good or service is not produced because no one wants it.

10.The economic perspective entails (1 Point)irrational behavior by individuals and institutions.a comparison of marginal benefits and marginal costs in decision making.short-term but not long-term thinking.rejection of the scientific method.11.Purposeful behavior suggests that (1 Point)everyone will make identical choices.resource availability exceeds economic wants.individuals may make different choices because of different desired outcomes.an individual's economic goals cannot involve trade-offs.12.Economics involves marginal analysis because (1 Point)most decisions involve changes from the present situation.marginal benefits always exceed marginal costs.marginal costs always exceed marginal benefits.much economic behavior is irrational.13.You should decide to go to a movie(1 Point)if the marginal cost of the movie exceeds its marginal benefit.if the marginal benefit of the movie exceeds its marginal cost.if your income will allow you to buy a ticket.because movies are enjoyable.14.You should decide to go to a movie (1 Point)if your income will allow you to buy a ticket.if the marginal cost of the movie exceeds its marginal benefit.because movies are enjoyable.if the marginal benefit of the movie exceeds its marginal cost.15.Opportunity costs exist because (1 Point)the decision to engage in one activity means forgoing some other activity.wants are scarce relative to resources.households and businesses make rational decisions.most decisions do not involve sacrifices or trade-offs.16.The assertion that "there is no free lunch" means that (1 Point)there are always trade-offs between economic goals.all production involves the use of scarce resources and thus the sacrifice of alternative goods.marginal analysis is used in economic reasoning.choices need not be made if behavior is rational.17.Consumers spend their incomes to get the maximum benefit or satisfaction from the goods and services they purchase. This is a reflection of (1 Point)resource scarcity and the necessity of choice.purposeful behavior.marginal costs that exceed marginal benefits.the trade-off problem that exists between competing goals.18.If a firm produces too little of a particular good, this would suggest that (1 Point)rational choice cannot be applied to many economic decisions.the good is being produced at a point where marginal costs exceed marginal benefits.government should intervene to produce more of the good.the good is being produced at a point where marginal benefit exceeds marginal cost.19.In deciding whether to study for an economics quiz or go to a concert, one is confronted by the idea(s) of (1 Point)scarcity and opportunity costs.money and real capital.complementary economic goals.full production.20.Which one of the following expressions best states the idea of opportunity cost? (1 Point)"A penny saved is a penny earned.""He who hesitates is lost.""There is no such thing as a free lunch.""All that glitters is not gold."

Explain role of economics in managerial decision making

state the law of marginal utility. explain the significance of utility maximization focus on three commodity and finally explain how consumer allocate their resources to maximizing their utility