Can someone help me clear the difference between these two terms as both the terms seems to be same ? Can theybe used interchangeably?
Rational Choice: suppose, you wanna buy an Iphone, consider two choice to buy an Iphone 6S 64GB or Iphone 6S 16GB, (128GB model ignored)... your rational choice is weighing of benefit from phone and opportunity cost. what are benefit? for 64GB model, you'll have good memory space that pleased you for long time...(high benefit) for 16GB model, you'll have very less memory space that you'll have to be careful about memory space...(low benefit) we know Iphone has no external memory card slot what are opportunity cost? 64GB model costs you very high. 16GB model costs you significantly low as compared to market price for extra memory space(but unfortunately, you can't have external memory card, so you've 2 choice) waiting time to it come in India that you may check the availability date(I suppose you're currently in India )... Its same for both model now, Its up to you how do you measure.. benefit and opportunity cost.. ultimately, you've two Rational Choices... and the Rational Decision making will be choosing best Rational Choice for other cases Ration decision making includes how much to get/purchase/ make/eat etc.
