Optimization can be achieved using either of two techniques of cost-benefit analysis.Which of the following correctly identifies the techniques?
A) Optimization using total value and optimization using profits
B) Optimization using total value and optimization using marginal analysis
C) Optimization in revenues andoptimization using costs
D) Optimization using marginal analysis and optimization using costs

Question

Quizplus · Accepted Answer

Optimization using total value and optimization using marginal analysis are the two techniques of cost-benefit analysis. Optimization using total value considers the overall value of a decision, while optimization using marginal analysis evaluates the incremental benefit and cost of each additional unit. Therefore, B is the correct choice as it identifies the two correct techniques. The other options do not correctly identify the techniques of cost-benefit analysis.

Optimization Can Be Achieved Using Either of Two Techniques of Cost-Benefit