Theory Managerial economics

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Theory Managerial economics

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Decision making lies at the heart of most important business and government problems. The range of business decisions is vast: Should a high-tech company undertake a promising but expensive research and development program? Should a petrochemical manufacturer cut the price of its best-selling industrial chemical in response to a new competitor’s entry into the market? What bid should company management submit to win a government telecommunications contract? Should management of a food products company launch a new product after mixed test-marketing results? Likewise, government decisions range far and wide: Should the Department of Transportation impose stricter rollover standards for sports utility vehicles? Should a city allocate funds for construction of...

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