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The Optimal Amount to Spend on Actions That Decrease the Probability

Question 98

Multiple Choice

The optimal amount to spend on actions that decrease the probability of bad outcomes is the amount that sets the_______ _ of reducing the probability of a bad outcome equal to the _______of the action(s) that reduce(s) the probability.


A) marginal benefit; marginal cost
B) expected marginal benefit; marginal cost
C) marginal benefit; expected marginal cost
D) expected marginal benefit; expected marginal cost

Correct Answer:

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