Individuals make economic decisions based on a variety of reasons. The rational is based on each individual's need or desire for a commodity. People go through several decision-making processes before making the final decision and are often unaware of it. Obviously, decision-making covers a vast area, involving virtually the entirety of human action. Often people are unaware of the process. The four principles of individual decision-making suggest that people face trade-offs. People must give up one thing to acquire another. This includes money, time, resources and energy. The cost of something is what a person is willing to give up to get it. Therefore, it is necessary to find an alternative and then compare and contrast the costs and benefits of the alternative action by making a rational decision. Rational people think with margin. Rational people deliberately evaluate options and opportunities. Marginal benefit is considered from the perspective of consumers, while marginal cost affects producers.. ...