What Is the Total Cost of the Optimal Solution

question 22

Multiple Choice

What is the total cost of the optimal solution?

• A)$43500
• B)$48500
• C)$54200
• D)$56900

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Definitions:

Marginal Utility

The supplementary enjoyment or value obtained by consuming another unit of a good or service.

Disability Insurance

A type of insurance that provides financial support to individuals who cannot work due to a disability.

Expected Utility

The anticipated satisfaction or value derived from a decision, taking into account the probabilities of different outcomes.

Risk-averse

A term describing individuals or entities that prefer to avoid risk, opting for more certain outcomes even if it means potentially receiving lower returns.