Scenario: Sarah has to choose between renting a hotel room for 2 days and renting a hotel room for 3 days.
-Refer to the scenario above.Which of the following statements is true?
A) Both optimization techniques will provide an efficient outcome, but optimization using total value will be faster to implement.
B) Both optimization techniques will provide an efficient outcome, but optimization using marginal analysis will be faster to implement.
C) Only optimization using marginal analysis can be used to arrive at an optimum choice. Optimization using total value will not be applicable in this case.
D) Only optimization using total value can be used to arrive at an optimum choice. Optimization using marginal analysis will not be applicable in this case.

Question

Quizplus · Accepted Answer

Marginal analysis is often faster to implement as it involves comparing the additional benefits and costs of one more day, rather than calculating the total value for each option.

Scenario: Sarah Has to Choose Between Renting a Hotel Room