Economists normally assume that people are rational. "It means to think about your next step forwad". The word "marginal" means "additional". The first glass of water on a hot day satisfies your thirst but next glass, may not so much.
Rational people know that decisions in life are rarely black and white but usually involves shades of gray. At dinnertime, the decision you face is not between fasting or eating like a pig but whether to take that extra spoonful of mashed potatoes.
Example, A person wants to buy mobile phone, he has two options in the same range, he will choose a phone which is of better quality and has extra features.
Rational people know that decisions in life are rarely black and white but usually involves shades of gray. At dinnertime, the decision you face is not between fasting or eating like a pig but whether to take that extra spoonful of mashed potatoes.
Example, A person wants to buy mobile phone, he has two options in the same range, he will choose a phone which is of better quality and has extra features.
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