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If the net benefit of project A is $20 and that of project B is $15, switching from project A to project B:
A) reduces the net benefit by $5.
B) increases the net benefit by $5.
C) reduces the net benefit by $15.
D) increases the net benefit by $15.
22) If the net benefit of project A is $10 and that of project B is $12, which of the following statements is true?
A) An individual can optimize by choosing Project A.
B) An individual can optimize by choosing Project B.
C) Switching from project A to project B reduces the net benefit by $2.
D) Switching from project A to project B increases the net benefit by $1.2.
23) If project A has a cost of $5, and a provides a benefit of $10, and project B has a cost of $2, and provides benefit of $4, then switching from project A to project B:
A) increases the net benefit by $3.
B) decreases the net benefit by $3.
C) increases the net benefit by $6.
D) decreases the net benefit by $6.
24) If project A has a cost of $2, and provides a benefit of $3, and project B has a cost of $ 5 and provides a benefit of $8, which of the following statements is true?
A) The net benefit of project A is $5.
B) An individual can optimize by choosing Project B.
C) Project A has a higher net benefit than project B.
D) A shift from project A to project B increases the net benefit by $1.
25) If project X has a cost of $6 and provides a benefit of $10, and project Y has a cost of $25 and provides a benefit of $27, which of the following statements is true?
A) An individual can optimize by choosing project X.
B) An individual can optimize by choosing project Y.
C) Switching from project X to project Y increases net benefit by $2.
D) Switching from project Y to project X decreases net benefit by $2.
26) In most cases, optimization in differences is faster and easier than optimization in levels because:
A) the former involves lesser number of steps to arrive at a conclusion.
B) the former uses simpler arithmetic tools in comparison to the latter.
C) the former only focuses on the benefits of an option ignoring all calculations involving costs.
D) the former only focusses on the key differences between options and ignores things in common.
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