Economics assumes rationality on the part of its subjects like consumers, producers and sellers. Rationality implies acting objectively, keeping in view the ends and means, objectives and constraints. In the decision making context a rational behavior implies the following:
First, all possible courses of action are known to you. Second, you are able to separate all such courses of action into two categories - feasible and unfeasible. Third, you are in a position to assess a particular feasible course of action out of the given set of alternatives. Fourth, you can rank the alternatives in terms of priorities. And last, you choose that course of action, which occupies the highest position, in order of priority.
First, all possible courses of action are known to you. Second, you are able to separate all such courses of action into two categories - feasible and unfeasible. Third, you are in a position to assess a particular feasible course of action out of the given set of alternatives. Fourth, you can rank the alternatives in terms of priorities. And last, you choose that course of action, which occupies the highest position, in order of priority.
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