According to the marginal-cost-marginal-benefit rule: A. only government project

Question

According to the marginal-cost-marginal-benefit rule:

A.

only government projects (as opposed to private projects) should be assessed by comparing marginal costs and marginal benefits.

B.

the optimal project size is the one for which MB = MC.

C.

the optimal project size is the one for which MB exceeds MC by the greatest amount.

D.

project managers should attempt to minimize both MB and MC.

A.

only government projects (as opposed to private projects) should be assessed by comparing marginal costs and marginal benefits.

Explanation / Answer

Ans is B

According to marginal cost-marginal benefit rule, optimal project size is the size where MArginal benefit is equal to marginal cost. The net benefit from the last unit should be zero.

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.