Which of the following statements identifies a difference between optimization using total value and optimization using marginal analysis?
A) Optimization using total value compares only the costs of different alternatives, whereas optimization using marginal analysis compares only the benefits of different alternatives.
B) Optimization using total value compares only the benefits from different alternatives, whereas optimization using marginal analysis compares only the costs of different alternatives.
C) Optimization using total value calculates the net benefits of different alternatives, whereas optimization using marginal analysis calculates the change in net benefits when switching from one alternative to another.
D) Optimization using total value calculates the change in net benefits when switching from one alternative to another, whereas optimization using marginal analysis calculates the net benefits of different alternatives.

Question

Quizplus · Accepted Answer

Optimization using total value calculates the overall net benefits of different alternatives, taking into account both costs and benefits. On the other hand, optimization using marginal analysis focuses on the change in net benefits when switching from one alternative to another, considering only the marginal costs and marginal benefits of each alternative. So, C is the correct statement that highlights the difference between the two optimization techniques.

Which of the Following Statements Identifies a Difference Between Optimization