Why Does Improving a Small, Routine Decision Have Business Value

question 14

Multiple Choice

Why does improving a small, routine decision have business value for a company?

• A)A small decision may have a great economic impact on the company.
• B)Even a routine decision may have a "ripple" effect through a corporation.
• C)A small decision has business value when added with all the other small decisions made in the company.
• D)Small, routine decisions typically do not have any business value for a company.

---

Definitions:

Efficient Price

The price at which the quantity of goods supplied is equal to the quantity of goods demanded, leading to an optimal allocation of resources.

Nonrival

A characteristic of a good or service that implies one person's consumption does not reduce its availability to others.

Public Good

A good that is non-excludable and non-rival in consumption, meaning no one can be prevented from using it and one person's use does not reduce availability to others.

Marginal Social Benefit

The additional benefit to society from producing one more unit of a good or service.