A manager of a clothing firm is deciding whether to add another factory in addition to one already in production.The manager would compare
A)The total benefits gained from the two factories to the total costs of running the two factories.
B)The incremental benefit expected from the second factory to the total costs of running the two factories.
C)The incremental benefit expected from the second factory to the cost of the second factory
D)The total benefits gained from the two factories to the incremental costs of running the two factories.

Question

Quizplus · Accepted Answer

The manager should compare the incremental benefit expected from the second factory to the cost of the second factory to determine if the additional factory is a worthwhile investment.

A Manager of a Clothing Firm Is Deciding Whether to Add