The cost-benefit principle
A) states that an action should be taken only if the total benefit is at least as great as the total cost.
B) implies that the cost of all alternatives should be included when choosing among alternatives.
C) states that an action should be taken only if the extra benefit is at least as great as the extra cost.
D) states that an action should be taken only if the average benefit is greater than the average cost.
E) states that an action should be taken only if the extra benefit is less than the extra cost.

Question

Quizplus · Accepted Answer

The cost-benefit principle states that an action should be taken only if the extra benefit is at least as great as the extra cost. This means that the benefits of the action should outweigh the costs incurred beyond what would already be incurred. The other answer choices are not accurate descriptions of the cost-benefit principle.

The Cost-Benefit Principle