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Standard neoclassical economic theory treats people as rational beings that make decisions by comparing marginal benefits to marginal costs. What do economists mean by this?Recognizing
Standard neoclassical economic theory treats people as "rational beings" that make decisions by comparing "marginal benefits" to "marginal costs." What do economists mean by this?Recognizing that assumptions are always simplifying, what are the strengths and weaknesses of this assumption in predicting economic behavior, both among individuals and in the economy as a whole?What other assumptions might work better?
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