Answer to Question #268916 in Economics for Dumex

Question

A business firm plan to launch a new product for which close substitutes are available in the market, one method of deciding whether or not this product should be launched is to obtain the service of a business consultant. The other method would be for the decision maker or manager to decide. In doing this the manager would need to investigate and analysis two major components. Identify and explain the two components.

Answer 1

In order to make a decision on this issue, it is necessary to know how much time the manager will spend on research and how much work he will not perform at the same time, that is, to determine the cost of making a decision. Then compare the received cost with the cost of specialist services.