<u>Decisions are based on expected costs and benefits because it helps the person in analyzing whether it is worth it or not.
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It is human tendency that he always wants a favorable and beneficial outcome out of his actions. Therefore, this expectation is the reason behind the cost and benefit analysis by a person before making a decision.
This helps an individual to come to conclusion as to whether making a particular decision is worth making or not. If in doing any particular act, the cost is too high or there are very little benefits, it is likely that an individual will not act that way.
