A business owner must decide whether to improve the benefits she offers her
employees. She calculates that improving benefits will cost the company an
extra $1,000 per employee each year. Thi s could prevent her from hiring as
many new employees as she would like over the next few years. On the other
hand, better benefits will help her hire more qualified employees who will stay
with the company for longer.
The decision-making process in the passage is best described as a(n).
A. opportunity cost
B. marginal benefit
C. incentive
D. cost-benefit analysis
