Which of the following statements is true?
A) Marginal analysis is a key component in the process of optimization using total value.
B) Only direct costs are considered when the net benefits of the alternatives are calculated.
C) In both the techniques of optimization, all costs have to be converted to the same unit of measurement.
D) Optimization using total value calculates the change in net benefits when a person switches from one alternative to another.

Question

Quizplus · Accepted Answer

In optimization, all costs and benefits must be converted to the same unit of measurement to accurately compare alternatives.

Which of the Following Statements Is True