A decision or choice that is made after optimization analysis ________.
A) has zero opportunity cost
B) is not necessarily risk free
C) is the same for all individuals
D) cannot be justified using normative analysis

Question

Quizplus · Accepted Answer

A decision made after optimization analysis is not necessarily risk-free as the analysis can only provide the best possible outcome given the available information and assumptions made, but it cannot eliminate all risks and uncertainties. Option A is incorrect as every decision has some opportunity cost. Option C is incorrect as the optimization analysis and resulting decision can differ for different individuals or groups. Option D is incorrect as normative analysis can be used to justify the decision made after optimization analysis.

A Decision or Choice That Is Made After Optimization Analysis