If One Defines Incremental Cost as the Change in Total

question 8

Multiple Choice

If one defines incremental cost as the change in total cost resulting from a decision,and incremental revenue as the change in total revenue resulting from a decision,any business decision is profitable if:

• A) it increases revenue more than costs or reduces costs more than revenue
• B) it decreases some costs more than it increases others (assuming revenues remain constant)
• C) it increases some revenues more than it decreases others (assuming costs remain constant)
• D) all of the above
• E) b and c only

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Definitions:

Biological Causes

Factors rooted in physiological or genetic conditions that lead to certain outcomes or behaviors.

Psychiatrists

Medical doctors specialized in diagnosing, treating, and preventing mental, emotional, and behavioral disorders.

Liability

The legal responsibility or obligation to compensate for harm or damage caused as a result of actions or negligence.

Social Drift Theory

The hypothesis suggesting that individuals from higher social classes who are predisposed to mental illness tend to drift into lower social classes.