Discussion
A defender's marginal cost falls in year 4 after rising in years 2 and 3. The one-more-year rule
Answer: D
Correct answer: may give the wrong answer and the full annual cost comparison is needed
The one-more-year rule assumes the marginal cost rises steadily, so that the first year it exceeds the challenger’s figure is the right year to replace. A cost that falls again in year 4 breaks that assumption: replacing at the first crossing could forgo a cheaper later period, so the defender’s annual cost must be evaluated over each possible retention period instead.
No comment is present. Be the first to comment.
Loading…
Post your comment
Please log in or register to post a comment.
Examination Categories
- SSC Exams
- Banking Exams
- Teaching Exams
- Civil Services Exams
- Railways Exams
- Engineering Recruitment Exams
- Defence Exams
- State Government Exams
- Police Exams
- Insurance Exams
- Nursing Exams
- Other Government Exams
- NRA CET
- PG Entrance Exams
- Campus Placement
- MBA Entrance Exams
- CUET and UG Entrance
- Judiciary Exams
- Regulatory Body Exams
- Software Development