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According to the Marginal-Cost-Marginal-Benefit Rule

Question 70

Multiple Choice

According to the marginal-cost-marginal-benefit rule,


A) only government projects (as opposed to private projects) should be assessed by comparing marginal costs and marginal benefits.
B) the optimal project size is the one for which MB = MC.
C) the optimal project size is the one for which MB exceeds MC by the greatest amount.
D) project managers should attempt to minimize both MB and MC.

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