The approach to problem solving in a private sector firm used in Managerial Economics includes all of the following EXCEPT:
A) the choice of the best solution consistent with the firm's or agency's objectives.
B) identification of the problem or decision to be made.
C) a statement of alternative solutions to the problem.
D) a determination of what data is relevant to the decision, and an analysis of that data relative to the alternative decision.
E) evaluation of the social benefits and social costs of the various problem solutions.

Question

Quizplus · Accepted Answer

Evaluation of the social benefits and social costs of the various problem solutions is typically not a consideration for private sector firms in their approach to problem solving, whereas it may be more relevant for public sector agencies. The other options listed (A, B, C, D) are all key components of the problem-solving approach used in Managerial Economics for private sector firms.

The Approach to Problem Solving in a Private Sector Firm