Question

When using a cost benefit analysis model, how does one know which option should be chosen from a list of alternatives?

a The marginal benefit must be greater than or equal to the marginal cost

b The marginal benefit must equal the marginal cost

c The marginal cost must be greater than or equal to the marginal benefit

d The marginal cost must be equal to the marginal benefit

Answer 1

c The marginal cost must be greater than or equal to the marginal benefit

Step-by-step explanation:

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