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Principle #03

  • Richard W Swinney
  • Jun 27
  • 1 min read

Updated: Jul 10

Rational people think at the margin.


Rational people systematically and purposefully do their best to achieve their objectives, given the opportunities available.



For example, a rational firm decides the number of workers to hire and amount of product to make and sell. A rational individual decides on labor time and what goods and services to purchase with earned income for maximum satisfaction.


Rational is the normative in Economics.


 
 
 

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