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People want to make decisions that will benefit them. If the costs are higher than the benefits, they will not make the decision to do something.
Wiki User
∙ 9y ago
Wiki User
∙ 11y agoBusiness decisions are based on this to maximize profit, thus increasing the success of the business.
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Why do people come to different decisions using a cost benefit analysis even under the same conditions?
Costs and benefits are both subjective.
How do lawmakers make good environmental decisions?
By weighing the costs and benefits of an environmental issue
Rational decisions occur when the marginal benefits of an action equal or exceed the marginal costs?
Rational Decision making occurs when marginal benefits of an action exceed the marginal costs
What is the definition of the economic perspective?
The making of purposeful decisions in the context of marginal costs and marginal benefits.
What describes the kinds of decisions that result from using cost-benefit analysis?
An outcome with benefits that are greater than the costs.
Why do people come to different decisions using a cost benefit analysis even under the same conditions?
Costs and benefits are both subjective.
How do lawmakers make good environmental decisions?
By weighing the costs and benefits of an environmental issue
Rational decisions occur when the marginal benefits of an action equal or exceed the marginal costs?
Rational Decision making occurs when marginal benefits of an action exceed the marginal costs
What is the third principle of the GASB?
To establish standards only when the expected benefits exceed the perceived costs.
What is the definition of the economic perspective?
The making of purposeful decisions in the context of marginal costs and marginal benefits.
What kinds of decisions result from using cost benefit analysis?
an outcome with benefits that are greater than the costs
What describes the kinds of decisions that result from using cost-benefit analysis?
An outcome with benefits that are greater than the costs.
What statement accurately describes how costs and benefits are calculated?
Calculations of cost and benefit are based on personal preferences.
What describe how costs and benefits are calculated?
Calculations of cost and benefit are based on personal preferences.
Explain the use of marginal analysis for break-even and profit-maximizing decisions?
In each case the process involves comparing costs and benefits of decisions that are made in small, incremental steps.
Which of the following is true of decisions made using cost-benefit analsis?
the best decision results in the most benefits with the fewest costs
Which of the following best describes the kinds of decisions that result from using cost-benefit analysis?
An outcome with benefits that are greater than the costs.
