Which of the Following Statements Identifies a Similarity Between Optimization

question 45

Multiple Choice

Which of the following statements identifies a similarity between optimization using total value and optimization using marginal analysis?

• A) Both techniques consider only the costs of different alternatives.
• B) Both techniques consider only the total benefits of different alternatives.
• C) Both techniques evaluate the total net benefit of different alternatives to arrive at a decision.
• D) Both techniques require the conversion of all costs and benefits into a common unit of measurement.

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Definitions:

Cognitive Dissonance Theory

The theory that inconsistencies produce psychological discomfort, leading people to rationalize their behavior or change their attitudes.

Social Loafing

The finding that people reduce effort when working in a group, compared to when working alone.

Fraternity Hazing

The practice of ritual and other non-ritual activities involving harassment, abuse, or humiliation as a way of initiating a person into a group.

Effort Justification

A phenomenon where individuals assign greater value to outcomes they have put significant effort into achieving, regardless of the actual value of the outcome.