What Does It Mean If a Person Makes a "Decision

question 91

Multiple Choice

What does it mean if a person makes a "decision at the margin"?

• A) The person compares additional benefits and additional costs when deciding what to do.
• B) The person weighs the good against the bad and then decides what to do.
• C) The person is more likely to say yes than to say no.
• D) The person compares marginal benefits and total costs and then decides what to do.
• E) The person makes a decision based on a condition.

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Definitions:

Predictable Demand

A situation where future customer demand for a product or service can be forecasted with a relatively high degree of accuracy based on historical data and trends.

Unpredictable Demand

Demand characterized by high variability and challenging to forecast accurately, often influenced by external factors and trends.

Low Cost Countries

Countries with lower labor and production costs, making them attractive locations for manufacturing and sourcing components.

Safety Inventory

Extra stock kept on hand to guard against uncertainty in demand or supply and prevent stockouts.