Decisions That Involve Doing Something or Not (E

question 94

Multiple Choice

Decisions that involve doing something or not (e.g. ,seeing a movie) and decisions that involve choosing a level (e.g. ,square footage of an apartment) are

• A) dissimilar,requiring two different models on how to decide.
• B) dissimilar,with the cost-benefit principle useful only when deciding on the level.
• C) similar,requiring a comparison of total benefits and total costs.
• D) similar,requiring a comparison of marginal benefits and marginal costs.
• E) similar,requiring a comparison of average benefits and average costs.