Which of the Following Describes One Aspect of Incremental Analysis

question 35

Multiple Choice

Which of the following describes one aspect of incremental analysis?

• A)Both costs and revenues that stay the same between alternate courses of action will be analyzed.
• B)Both costs and revenues that differ between alternate courses of action will be analyzed.
• C)All costs and revenues, regardless if they stay the same or differ between alternate courses of action, will be analyzed.
• D)Only costs relating to the decisions at hand are analyzed.

---

Definitions:

Comparative Advantage

The ability of an individual, company, or country to produce a good or service at a lower opportunity cost than competitors, facilitating beneficial trade and specialization.

Absolute Advantage

The ability of a party to produce more of a good or service than competitors, using the same amount of resources.

Free Trade

The absence of tariffs, quotas, or other governmental restrictions on international trade, allowing goods and services to move freely across borders.

Opportunity Cost

Signifies the advantages that a person, investor, or company forgoes by selecting one option instead of another.