Choosing a Decision Alternative That Maximizes the Minimum Profit Is

question 13

Multiple Choice

Choosing a decision alternative that maximizes the minimum profit is a feature of the __________ approach.

• A)expected value
• B)optimistic
• C)conservative
• D)maximin regret

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Definitions:

Grocery Store

A retail store that sells food and other household goods.

Marginal Social Benefit

The additional benefit to society as a whole from one more unit of a good or service being consumed.

Marginal Private Benefit

The additional benefit or satisfaction received by a consumer or producer from consuming or producing one more unit of a good or service.

Marginal Social Cost

The total cost to society of producing an additional unit of a good or service, including both private costs and any externalities.