One of the Benefits of Using Intuition to Make Decisions

question 35

Multiple Choice

One of the benefits of using intuition to make decisions is that it can

• A) be useful when you have unlimited resources.
• B) help managers who are bounded.
• C) speed up the decision-making process.
• D) help managers understand all of the highly desirable conditions.
• E) slow down the decision-making process so you don't make a mistake.

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Definitions:

Stock Externality

Accumulated result of action by a producer or consumer which, though not accounted for in the market price, affects other producers or consumers.

Negative Externality

A situation where the production or consumption of a good or service imposes a cost on third parties not directly involved in the transaction.

Noise Pollution

Unwanted or harmful outdoor sound, including industrial, transportation, and recreational noises, that can disrupt daily life and harm health.

Stock Externalities

Environmental consequences of economic actions that affect the value of stocks and investments, not originally accounted for in the stock market.