Question

After using a rational decision making model, Clarence come to the conclusion that option A has more costs than option B. In order to make a rational decision Clarence should decide on which option?

a
b
both
none

Answer 1

The answer is: B.

A decision would be considered as 'rational' if that decisions provide more benefit in achieving decision maker's goal compared to other option. In choosing which products to purchase, the one with lower cost would be the more rational decision assuming that the quality that other options have are equal.