________ Refers to Basing Managerial Decisions on the Best Available

question 40

Multiple Choice

________ refers to basing managerial decisions on the best available scientific proof.

• A) Emergency management
• B) Personal knowledge management
• C) Property management
• D) Evidence-based management
• E) Knowledge management

---

Definitions:

MC > MR

A condition where the marginal cost of producing an additional unit is greater than the marginal revenue earned from selling it, suggesting a decrease in production might increase profit.

Profit

The financial gain realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

MC = MR

This abbreviation stands for the equality of marginal cost (MC) and marginal revenue (MR), a condition for profit maximization in perfectly competitive markets.

Profit

The profit achieved when the income from business operations surpasses all associated expenses, costs, and taxes.