Question

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

Answer 1

Because people want to make decisions that will benefit them. If the costs are higher

Answer 2

When individuals or companies decide how much to spend or produce, they must do it ahead of time. The most reliable factor to determine how much should be spent is to figure out what the expected cost will be, and if that results in a sufficient profit. For example, if a company wants to expand their business nationwide, they must evaluate whether that would benefit their profits, or if it is too much of a risk for losing profit. Hope this helps!