📚 Learning Guide
Finding Optimal Choices
easy

An increase in total revenue always guarantees a better decision-making outcome in economics, regardless of total cost.

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Learning Path
Learning Path

Question & Answer
1
Understand Question
2
Review Options
3
Learn Explanation
4
Explore Topic

Choose the Best Answer

A

True

B

False

Understanding the Answer

Let's break down why this is correct

Answer

An increase in total revenue does not always guarantee a better decision-making outcome in economics because it is important to consider total costs as well. For example, a company may see its revenue increase from selling more products, but if the costs to produce those products also rise significantly, the profit might not improve. In this case, even though revenue is higher, the overall financial situation could be worse. Therefore, good decision-making requires looking at both revenue and costs to determine if a choice is truly beneficial. Understanding this balance helps businesses and individuals make smarter choices that lead to better outcomes.

Detailed Explanation

Just because revenue goes up doesn't mean the decision is good. Other options are incorrect because Many people think more money means better choices.

Key Concepts

Total Revenue
Total Cost
Profit Maximization
Topic

Finding Optimal Choices

Difficulty

easy level question

Cognitive Level

understand

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