Which of the following statements is true of optimization?
A) Optimization analysis only relates to the financial budget of an economic agent.
B) Individuals who optimize do not consider costs when choosing the most feasible alternative.
C) Economic agents can optimize only when they are able to perfectly estimate all future costs and benefits.
D) Economic agents who optimize attempt to choose the best feasible option, given the information that they have.

Question

Quizplus · Accepted Answer

Economic agents who optimize attempt to choose the best feasible option, given the information that they have. They do not necessarily need to perfectly estimate all future costs and benefits, but rather weigh the trade-offs and make the best decision based on the available information. Optimization is not limited to financial budgets, and individuals who optimize do consider costs when choosing the most feasible alternative.

Which of the Following Statements Is True of Optimization