Scenario: Assume That There Are Five Apartments Located at Different

Multiple Choice

Scenario: Assume that there are five apartments located at different distances from an individual's place of work-very close, close, far, very far, and extremely far. The individual makes his choice by studying the change in costs as he moves farther from his place of work. He has to choose between renting one of the five apartments. The movement from apartment Very Close to Close has a marginal cost of −$60, a movement from apartment Close to Far has a marginal cost of −$40, a movement from apartment Far to Very Far has a marginal cost of −$10, and a movement from apartment Very Far to Extremely Far has a marginal cost of $20.
-Refer to the scenario above.Which of the following is used to arrive at the optimum decision in the scenario?

A) Optimization using total value
B) Before and after comparisons
C) Total net benefit approach
D) Principle of Optimization at the Margin