Question

Which of the following is an example of an extent decision? Should your company implement a different bonus structure for managers? Should your company test new products using focus groups? Should your company develop new software? How many units of output should be produced?

Answer 1

Answer:

How many units of output should be produced?

Explanation:

Extent Decision  concern about how much or how many of a commodity have to make.

• Under this problem, a manufacturer has to decide how many units of output have to produce to get more revenue.

Marginal analysis in Extant Decision is a review of an activity's added benefits related to the additional costs, caused by the same operation.

• Industries are using marginalization as a method for making decisions, that enable them to increase their profitability.