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.

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

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. ​

Respuesta :

What is rational behavior?

Otras preguntas

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.