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What occurs when individuals make decisions in which benefits exceed costs?


A. They are removing the opportunity costs of decisions.


B. They are using a rational decision-making model.


C. They are making irrational economic decisions.


D. They are eliminating all trade-offs of the decision.

Respuesta :

austmahaney

Answer:Scarce resources diminish as they are used and almost all resources are scarce.

In order to use a scarce resource, you are inherently using the resource for one purpose and not an alternative.

The cost of using a resource is called the opportunity cost: the value of the next best alternative that you could be using the resource for instead.

Key Terms

Scarce: Insufficient to meet demand.

Opportunity cost: The value of the best alternative forgone.

Explanation:

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