Cost-benefit principles can be applied to the decision of:
A) profit-maximizing firms.
B) majority-rule voting.
C) which project receives the most votes.
D) rational ignorance.
E) all of the above.

Question

Quizplus · Accepted Answer

Cost-benefit principles can be applied to all the given options. Profit-maximizing firms often weigh the costs and benefits of different production or pricing strategies to maximize their profits. Majority-rule voting involves weighing the costs and benefits of different policies or candidates before casting a vote. Similarly, when considering which project to support, the costs and benefits of each option are weighed. Rational ignorance involves deciding whether it is worth investing time and resources to become informed about a particular issue, by weighing the costs and benefits of being informed. Thus, cost-benefit principles can be applied to all the given options.

Cost-Benefit Principles Can Be Applied to the Decision Of