The Rational Rule for Sellers is that sellers should choose the quantity where marginal revenue equals marginal cost and choose the price that is on the seller's demand curve for that quantity.
The rational rule for sellers states that if the price is: less than the marginal cost; less than the marginal benefit; or more than or equal to the marginal benefit, the seller should sell one more unit of the good.
The Rational Rule for Buyers states that one should purchase more of anything if the additional benefit outweighs (or is equal to) the price.
The foundation of economic theory is the premise that people's economic choices are reasonable. This has two capabilities: Most of the time, they want to maximize their own financial self-interest. They are able to calculate the financial costs and reward themselves for different decisions.
Hence the correct option is 4
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