Question

In one or two sentences, describe why decisions are based on expected costs and benefits.

Answer 1

♦Long version: Generally, man wants to engage in feasible business or investment that will bring profits or benefits. Because of this, before engaging in the business or purchasing of a product, he usually weights the costs and the benefits that will be derived. If the benefits are higher than the costs, he will usually be ready to engage in the business or buy the product, but if the reverse is the case, he will see no reason for engaging in such a business.
♦Short version: Because we are human beings and we instinctively will do what is most beneficial to us. This includes low costs and high benefits. Whatever benefits is us worth the time