The Cost-Benefit Principle indicates that an action should be taken if:A. its total benefits exceed its total costs. B. its average benefits exceed its average costs. C. its net benefit (benefit minus cost) is zero. D. its extra benefit is greater than or equal to its extra cost.

Question

Yareli Patel

Business

5 March, 16:56

The Cost-Benefit Principle indicates that an action should be taken if:A. its total benefits exceed its total costs. B. its average benefits exceed its average costs. C. its net benefit (benefit minus cost) is zero. D. its extra benefit is greater than or equal to its extra cost.

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Answers (1)

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Chandler Gillespie · Answer 1

A. its total benefits exceed its total costs.

Explanation:

In the theory of decision, the cost-benefit principle analizes the potential benefits and costs of a projects of any nature. A necessary condition according to this theory, the benefits must be greater than the costs.

The direct implication of this stament is to evolve to a better stage than where the situation, organization or community actually is.