Projects Are Said to Be Mutually Exclusive When Undertaking One

question 49

True/False

Projects are said to be mutually exclusive when undertaking one precludes doing the other(s).

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Definitions:

Marginal Benefit

The increased benefit derived from the utilization of one more unit of a good or service.

Marginal Cost

The cost added by producing one additional unit of a product, focusing on changes in overall cost with slight increases in production.

Sunk Costs

Costs that have already been incurred and cannot be recovered.

Marginal Analysis

The examination of the benefits and costs of an additional unit of consumption or production to make decisions on allocations of resources.