Business College

Economic theory assumes that people act rationally and maximize their total satisfaction. Explain this proposition and discuss whether people who spend 30 days a year commuting fulfil these assumptions.

​

Answers

Answer 1

Indeed, the proposition is that people act rationally and maximize their total satisfaction when making decisions.

What is rational behavior?

Rational behavior is a decision-making process that results to optimal benefits or utility for the decision-maker. The assumption of rational behavior implies that decision-makers make choices to benefit them above the marginal costs of such decisions.  

Thus, people who spend 30 days per year in commuting actually fulfill the rational assumption, because they derive maximum marginal benefits visa-a-vis commuting more or less than 30 days annually.

Learn more about rational behaviors at https://brainly.com/question/14822912 and https://brainly.com/question/8471872

Related Questions

Other Questions
When phenol reacts with ammonia is presence of zncl_(2) at 300^. a super slim diet claims to help you lose 6lb in two weeks. the slim off diet claims to help you lose 3.5kg a week which diet claims the largest loss? Compare of the growth of two groups of plants in this experiment what is this helppp 1/2 + 1/5 Ecosystem are grouped together into larger areascalled biomes. Howwould you define a biome? the oldest type pf music Factor. 9x^2+42xy+49y^2 Enter your answer in the box can someone explain how to solve the equation 4k + 6 = 9 + 9k Which function of marketing would involve a focus group? 108 115 122 129 next number in sequence do you play volleyball, Matthew 1. Ang mga sumusunod ay halimbawa ng nakakahawang sakit MALIBAN saisa. Alin dito?A. Dengue FeverB. AlipungaC. LeptospirosisD. Lung Cancer Carbon cycle diagram The formation of oiltrap andThegives out ahuge amount ofthenthen feed onand take inSeathethe storedthisThe seaand fall to theInstructionsFill in the blanks to completeeach stage of the formationof oil. Once you have donethis, draw a picture in the boxto show what is happening ateach stage.andLayers ofrock from on top of thedeadOver time,a lack of oxygenthe deadto formThethat wasstored in their bodies isnow stored in the In what condition did the messenger find Oedipus when he was a baby? A) He was perfectly healthyB) He was near deathC) He was malnourishedD) His feet were tied together What is the answer for y and x I need help ASAP!!! Plz someone help meeeeeeeee plzzzzzz helppp meee Im desperate!!! Dan had sixteen dimes and thirty-seven pennies in his bank. His dad borrowed nineteen pennies from Dan. How many pennies does he have now ? SIMPLIFY THE EXPRESSION: Answer choices: A. 2xyz^2B. 2x^-7y^7z^2C. 5x^12y^12z^2D. 5xyz^2THANK YOU SO MUCH! Que son los estudios sociales?