A businessperson calculates the odds of every purchase decision in order to maximize returns on an investment.Which of the following mental models is this businessperson using?
A)Cost-benefit analysis model
B)Problem solving model
C)Haggling model
D)Game playing model

Question

Quizplus · Accepted Answer

This businessperson is using the cost-benefit analysis model, as they are weighing the costs and benefits of each purchase decision in order to maximize returns. This model involves calculating the expected costs and benefits of different options in order to determine the most profitable course of action. The other models listed (problem solving, haggling, game playing) do not necessarily involve this kind of quantitative analysis of costs and benefits.

A Businessperson Calculates the Odds of Every Purchase Decision in Order