Which of the following statements identifies a difference between optimization in levels and optimization in differences?
A) Optimization in levels compares only the costs of different alternatives, whereas optimization in differences compares only the benefits of different alternatives.
B) Optimization in levels compares only the benefits from different alternatives, whereas optimization in differences compares only the costs of different alternatives.
C) Optimization in levels calculates the net benefits of different alternatives, whereas optimization in differences calculates the change in net benefits when switching from one alternative to another.
D) Optimization in levels calculates the change in net benefits when switching from one alternative to another, whereas optimization in differences calculates the net benefits of different alternatives.
C
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"A doubling of the price of gasoline in the 1970s did not reduce consumption one iota." The person making the above claim evidently thinks the demand for gasoline is
A) completely elastic. B) completely inelastic. C) greater than the supply. D) less than the supply. E) unit elastic.
The economic development strategy aimed at exporting domestically manufactured goods is called a(n):
a. replacement strategy. b. market-oriented strategy. c. inward-oriented strategy. d. outward-oriented strategy. e. future-oriented strategy.
James opened a baseball manufacturing operation, and initially the more balls he made, the lower the per-unit cost. Now, as output expands, his per-unit costs are rising. He concludes that diseconomies of scale have set in. Is he correct? Why?
Which of the following would you need to know to calculate the unemployment rate?
a. the size of the active military b. the number of discouraged workers c. the size of the civilian labor force d. the number of workers still enrolled in high school