Question

Question 1 1 pts Khloe is the owner of a wellness center in Los Angeles. Her business has been growing over three years and she is now considering expanding her business by adding a healthy cafe in her center. Khloe is analyzing the estimated costs projected potential revenue and costs and benefits of a cafe. Khloe is behaving rationally because O adding a cafe is the optimal decision Oshe is considering not only her own interests, but those of the competition and community as well. O her decision will be based on her self interest.

Answer 1

Option C.

Khloe is behaving rationally because her decision will be based on her self interest. Rational behavior refers to the decision making process that is based on making choices that result in optimum level of benefit or utility for the individual. Since Khloe is analyzing all the estimated costs, projected potential revenue and costs and benefits of a cafe , thus, is acting in the self interest and optimizing it, thus, is behaving rationally.