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Tidy Tidy
wrote...
Posts: 4852
9 years ago
Explain the economic assumption that "people are rational."
Textbook 
Essentials of Economics

Essentials of Economics


Edition: 4th
Authors:
Read 138 times
2 Replies
Repeat after me: 'Calm down. Things are gonna be fine. Things are gonna be all great. Just relax.' Wink Face

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wrote...
9 years ago
"People are rational" means that economists assume consumers and firms will use all available information as they act to achieve their goals. Rational individuals weigh the benefits and costs of each action, and they choose an action only if the benefits exceed the costs.
wrote...
9 years ago
Happy to assist!
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