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Question
effective decision - making means comparing the additional costs of alternatives with the _.
○ marginal benefits
○ total costs
○ diminishing utility
In economics, effective decision - making involves comparing the additional (marginal) costs of alternatives with the marginal benefits. Marginal benefits are the additional benefits from a one - unit increase in an activity, and comparing them with marginal costs helps in making optimal decisions. Total costs are not relevant as we focus on the additional changes, and diminishing utility is related to the decrease in satisfaction from consuming more units and not directly to this decision - making comparison.
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A. marginal benefits