Two types of costs must be considered when selecting the optimal decision rule.They are _____ and _____.
A)decision-making costs;external costs
B)marginal costs;variable costs
C)decision-making costs;political costs
D)political costs;external costs

Question

Quizplus · Accepted Answer

Decision-making costs refer to the expenses associated with the process of making a decision, such as research and analysis costs. External costs are those that affect parties outside the decision-making entity, such as environmental impact or societal costs. These two types of costs are crucial to consider for optimal decision-making.

Two Types of Costs Must Be Considered When Selecting the Optimal