The Rational Addiction Model of Gary Becker and Kevin Murphy

Multiple Choice

The rational addiction model of Gary Becker and Kevin Murphy contends that:

A) addicts are irrational and do not consider the full costs of using addictive substances.
B) consumers weigh the benefits of using addictive substances along with their full costs.
C) standard economic models are not equipped to address socially destructive behavior.
D) prices play no role in the decisions to use addictive substances.