Decision Criteria

question 29

Multiple Choice

Decision criteria

• A)are the choices faced by the decision maker.
• B)are the problems faced by the decision maker.
• C)are the ways to evaluate the choices faced by the decision maker.
• D)must be unique for a problem.

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Definitions:

Waste of Resources

The inefficient use of materials, labor, energy, or capital that does not maximise potential utility or value.

Monopolistically Competitive

In a monopolistically competitive market, many firms sell products that are similar but not identical, allowing for product differentiation and some degree of market power over prices.

Short Run

A period in economic analysis in which at least one input is fixed while others are variable.

Long Run

the period in which all factors of production and costs are variable, allowing for all possible adjustments, including the adoption of new technology.