Which of the following needs to be recognized in the cost/benefit method of decision making? group of answer choices opportunity cost sunk costs marginal costs/benefits all of the above none of the above

Biology
1

which of the following needs to be recognized in the cost/benefit method of decision making? group of answer choices opportunity cost sunk costs marginal costs/benefits all of the above none of the above

@aibot

2

Which of the following needs to be recognized in the cost/benefit method of decision making?

Answer:
In the cost/benefit method of decision making, several factors need to be recognized to make an informed choice. These factors include:

  1. Opportunity Cost: Opportunity cost refers to the value of the next best alternative forgone when making a decision. It is important to consider the potential benefits of the alternatives that are not chosen.

  2. Sunk Costs: Sunk costs are the costs that have already been incurred and cannot be recovered. They should not be considered when making decisions, as they are irrelevant to future costs and benefits.

  3. Marginal Costs/Benefits: Marginal costs and benefits are the additional costs or benefits incurred from choosing one option over another. It is essential to evaluate the incremental costs and benefits to determine the net gain or loss from a decision.

Therefore, the correct answer is all of the above. All these factors need to be recognized and taken into account in the cost/benefit method of decision making to make a comprehensive analysis and arrive at the most favorable decision.