According to the Cost-Benefit Principle, If a Change Generates $50,000

question 9

Multiple Choice

According to the cost-benefit principle, if a change generates $50,000 in gains and $45,000 in losses,

• A)it is desirable.
• B)the gain is not large enough to justify the change.
• C)the desirability depends on who gains and who loses.
• D)it is a Pareto improvement.

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Definitions:

Find A Business

The process of identifying and locating a particular company or entrepreneurial opportunity within a specific industry or market.

Material Handling Costs

Expenses associated with the moving, storing, and control of materials in a manufacturing or warehousing environment.

Competitive Advantage

A condition or attribute that allows a company to outperform its competitors, often achieved through offering superior value to customers or operating more efficiently.

Manufacturing Business

An enterprise engaged in the industrial production of goods from raw materials or components, using various processes like assembling, fabricating, or processing.