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Describe How the Administrative Model of Decision Making Differs from the Classical

question 8

Essay

Describe how the administrative model of decision making differs from the classical model and explain the three concepts on which the administrative model is based.


Definitions:

Optimal Amount

The ideal quantity of a good or resource that maximizes efficiency or value.

R&D

Stands for Research and Development, a business or government activity that involves the investment of resources in developing new products, services, or processes.

Total Utility

The total satisfaction or benefit obtained from consuming a particular quantity of goods or services.

Specific Amount

A specific amount refers to a particular sum or quantity of something, defined by a number or measure.

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