Final answer:
To make the right decision between a risky and a conservative choice, a business manager should perform a cost/benefit analysis, weighing the marginal costs against the marginal benefits.
Step-by-step explanation:
When a business manager is faced with competing decisions, one being risky and the other more conservative, the manager should calculate the cost/benefit analysis to help make the right decision. This involves comparing what will be sacrificed, which is typically the cost in terms of money, effort, and other sacrifices, against what will be gained, such as benefits in terms of money, time, experience, and other improvements. By assessing the marginal costs against the marginal benefits, a manager can make informed decisions that balance the tradeoff between return and risk, ultimately based on personal preferences and different time frames.