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Category: Essay

Subcategory: Economics

Level: College

Pages: 2

Words: 550

Question 1
At every stage of management, decisions are made to ensure business or organizational goals are realized. Decision-making is a practice of picking a sound choice from all available options. When an individual is attempting to arrive at a good decision, he or she should weigh the negatives and positives of every option and deliberate all alternatives. For operative decision-making, an individual should be competent to forecast the consequence of every choice as well and endowed on all these factors, determine which route is the finest for that specific situation. When making a decision such as societal issues, personal productivity, or business decisions, marginal reasoning is crucial to making sensible choices about limited resources (“Norton Ebooks”). Marginal thinking means to reason about the next step forward. The word marginal means additional. Therefore, when one is thinking at the margin, he or she is reasoning about what the additional or next action means for him or her. Nearly all decisions are actually made at the margin. The decision at the margin is the choice to do a little less or a little more of something. For example, even when the cost of water increases, we will still use water because we cannot bring its consumption to zero. However, increase in cost may prompt people to attempt to reduce the consumption a little bit. The decision concerning water consumption is, therefore, made at the margin.
Question 2
When someone is the best at producing or…

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