The Act of Choosing a Solution That Is Good Enough

question 36

Multiple Choice

 The act of choosing a solution that is good enough is called

• A) framing.
• B) reasoning.
• C) satisficing.
• D) discounting.

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Definitions:

Opportunity Cost

Forgoing possible gains from various alternatives by picking a specific one.

Personal Savings

The portion of an individual's income that is not spent on consumption and is saved for future expenses, investments, or emergencies.

Explicit Cost

Direct, out-of-pocket payments for the purchase of inputs or resources for business operations.

Marginal Product

The additional output resulting from using one more unit of a given input, holding all other inputs constant.