Why Is Decision Making a Perceptual Issue

question 102

Multiple Choice

Why is decision making a perceptual issue?

• A) Before a decision is made, a problem must be perceived to exist.
• B) Decision making is generally by consensus.
• C) Decisions must be made on how to move from the current state of affairs to some desired state.
• D) There may be more than one way to solve a problem.
• E) Middle and lower level managers may have different perceptions on how to solve a problem than their underlings or top level managers.

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Definitions:

MB = MC

The optimal condition in economics where the marginal benefit (MB) of an action is equal to its marginal cost (MC), leading to efficient allocation of resources.

MB < MC

A condition where the marginal benefit of producing an additional unit is less than the marginal cost of producing that unit.

Decision Maker

An individual or group responsible for making choices or judgments, particularly in a professional or organizational context.

Total Profit Maximization

The process or strategy of adjusting production and sales to achieve the highest possible profit.