An optimal decision is one that is selected based on an analysis of
A)explicit costs but not implicit costs.
B)implicit costs but not explicit costs.
C)both explicit costs and implicit costs.
D)neither explicit costs nor implicit costs.

Question

Quizplus · Accepted Answer

An optimal decision takes into account both explicit costs (such as monetary costs) and implicit costs (such as opportunity costs). Ignoring either type of cost could lead to a suboptimal decision. Therefore, the best choice is C, which accounts for both types of costs in the decision-making process.

An Optimal Decision Is One That Is Selected Based on an Analysis