How Can Evidence-Based Management Assist Managers to Make Better Decisions

question 45

Multiple Choice

How can evidence-based management assist managers to make better decisions?

• A)By learning from experience and basing future decisions on successful past decisions.
• B)By searching for the best available evidence to support systematic study in preparing for decision making.
• C)By engaging with the staff,asking them to provide evidence for the decisions they make.
• D)By supporting decisions with evidence that the right choice was made.

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Definitions:

Average Fixed Cost

The fixed costs of production (costs that don't change with the level of output) divided by the quantity of output produced.

Marginal Product

The additional output resulting from a one-unit increase in the input of a particular productive resource, holding all other inputs constant.

Average-Total-Cost

The cost per unit of output, calculated by dividing the total cost (fixed and variable costs) by the total quantity produced.

Marginal-Cost

The expense associated with producing one additional unit of a good or service, critical for decision-making in business and economic policy.