In the Classical Model of Decision Making, the Most Appropriate

question 68

Multiple Choice

In the classical model of decision making, the most appropriate decision possible in light of what is believed to be the most desirable consequences for the organization is known as the ________ decision.

• A)intuitive
• B)creative
• C)heuristic
• D)subjective
• E)optimum

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Definitions:

Marginal Product

The additional output a firm gains from employing one more unit of input, holding the levels of all other inputs constant.

Marginal Product

The increase in output that arises from an additional unit of input, holding all other inputs constant.

Factors of Production

Resources used in the production of goods and services, including labor, capital, entrepreneurship, and land.

Total Income

The aggregate amount of money earned by an individual or organization from all sources before taxes or deductions.