Rational choice theory posits that people make rational decisions based on weighing costs and benefits to maximize their own utility. It assumes humans are goal-oriented and make choices by rationally calculating how different options fulfill their preferences. According to rational choice theory, social change occurs as the result of individuals making utility-maximizing choices. However, critics argue that people do not always make decisions through strict cost-benefit analysis and that rational choice theory cannot fully explain all social phenomena like altruism.