A Marginal Analysis of Two or More Possible Courses of Action

question 1

Multiple Choice

A marginal analysis of two or more possible courses of action takes into account:

• A) only the fixed costs involved in each course of action.
• B) only the costs that vary with each course of action.
• C) all of the costs involved in each course of action.
• D) all the revenue received from each course of action.

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Definitions:

Divergent Thinking

A thought process or method used to generate creative ideas by exploring many possible solutions, often leading to innovative and unexpected conclusions.

Creative Process

Refers to the sequence of thoughts and actions leading to the production of novel and useful ideas or artifacts, encompassing stages like preparation, incubation, illumination, and verification.

Incubation Stage

A phase in the creative process where ideas mature and develop subconsciously before being realized or brought to fruition.

Convergent Thinking

A cognitive process where an individual focuses on finding a single, well-defined solution to a problem, limiting creativity by emphasizing standardization and correctness.