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Lindsay is facing four problems. The first is that the way her department is overworking its employees is going to lead to problems soon. The second is that she has to figure out what procedure must be followed to discharge George, an employee who has not been behaving appropriately. The third problem is that she has to determine where missing supplies have gone. Finally, she needs to come up with a new idea to address how to package the company's products since shipping requirements have changed. Identify and describe the four types of reasoning abilities, and explain which one Lindsay needs to apply to each of her four problems.
Optimal Quantity
The amount of a good or service that yields the maximum economic benefit or utility.
Cost-Benefit Analysis
A comparison of the marginal costs of a project or program with the marginal benefits to decide whether or not to employ resources in that project or program and to what extent.
Marginal Cost
The additional expense incurred from creating an extra unit of a product, emphasizing how production costs change with the level of output.
Marginal Benefit
The supplementary value or advantage gained by using or generating one more quantity of a good or service.
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