Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose 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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