Final answer:
Market research is used to reduce the risk in making decisions by providing insights into consumer behaviors and market trends, thereby supporting informed business decisions.
Step-by-step explanation:
At its core, market research is used to B. Reduce the risk in making decisions. Market research involves gathering, analyzing, and interpreting information about a market, and about past, present and potential customers for a product or service, business competition, and the industry as a whole. This data helps to inform businesses and reduces the risk associated with making decisions by providing evidence and insights into consumer behaviors and market trends.
Politicians, teachers, doctors, and businesses all rely on some form of market research or predictive analysis to make informed decisions. In the realm of antitrust regulation, for example, detailed market analysis and statistical models are employed to estimate outcomes for consumers if two firms are allowed to merge. These models are useful to reduce the risks of making decisions based on imperfect information which can affect price, quantity, and quality within a market.