GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Cost-Benefit Analysis
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Trade-off
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Marginal Cost
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Opportunity Cost
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Detailed explanation-1: -A cost-benefit analysis is the process of comparing the projected or estimated costs and benefits (or opportunities) associated with a project decision to determine whether it makes sense from a business perspective.
Detailed explanation-2: -What is a cost-benefit analysis (CBA)? A cost-benefit analysis (also called a benefit-cost analysis) is a decision-making tool that helps you choose which actions are worth pursuing. It provides a quantitative view of an issue, so you can make decisions based on evidence rather than opinion or bias.
Detailed explanation-3: -The cost-benefit analysis assigns monetary values to both the benefits and the costs of programs (or policies or projects), whereas the cost-effectiveness analysis assigns monetary values only to the costs, which usually proves easier than assigning monetary values to the benefits.