Cost-minimization analysis
Okay kiddo, imagine you have three types of candies, and you want to buy as many as possible without spending too much money. You can figure out which option is the most cost-effective by doing a cost-minimization analysis.
First, you need to know how much each candy costs. Let's say the first candy costs $0.50, the second one costs $0.25 and the third one costs $0.75.
Then, you need to figure out which candy is the cheapest per unit. For example, the second candy is the cheapest because it costs the least amount of money per piece.
Finally, you need to figure out how many of the cheapest candy you can buy with your budget. Let's say you only have $1.00 to spend. You can buy four pieces of the second candy with your budget because each piece costs $0.25.
So, in this scenario, the cost-minimization analysis tells you that the second candy is the most cost-effective option because you can buy more pieces of it with your budget compared to the other two candies.
First, you need to know how much each candy costs. Let's say the first candy costs $0.50, the second one costs $0.25 and the third one costs $0.75.
Then, you need to figure out which candy is the cheapest per unit. For example, the second candy is the cheapest because it costs the least amount of money per piece.
Finally, you need to figure out how many of the cheapest candy you can buy with your budget. Let's say you only have $1.00 to spend. You can buy four pieces of the second candy with your budget because each piece costs $0.25.
So, in this scenario, the cost-minimization analysis tells you that the second candy is the most cost-effective option because you can buy more pieces of it with your budget compared to the other two candies.