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Which of the following statements identifies a similarity between optimization using total value and ...

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Which of the following statements identifies a similarity between optimization using total value and ...

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

▸ Both techniques consider only the costs of different alternatives.

▸ Both techniques require the conversion of all costs and benefits into a common unit of measurement.

▸ Both techniques consider only the total benefits of different alternatives.

▸ Both techniques evaluate the total net benefit of different alternatives to arrive at a decision.

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Macroeconomics

Edition: 3^rd

Authors: Acemoglu, Laibson, List

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