According to the Cost-Benefit Principle

question 68

Multiple Choice

According to the cost-benefit principle

• A) if a change generates $50,000 in gains and $45,000 in losses, it is desirable.
• B) if a change generates $50,000 in gains and $45,000 in losses, the gain is not large enough to justify the change.
• C) if a change generates $50,000 in gains and $45,000 in losses, the desirability depends on who gains and who loses.
• D) if a change generates $50,000 in gains and $45,000 in losses, it is a Pareto improvement.