Economic theory is a valuable tool for business decision making because it:

a) Identifies for managers the essential information for making a decision
b) Assumes away the problem
c) Creates a realistic, complex model of the business firm
d) Provides an easy solution to complex business problems

The correct answer is "a) Identifies for managers the essential information for making a decision".

Explanation: Economic theory is a valuable tool for business decision making because it identifies for manager the essential information for making a decision since through certain assumptions about essential aspects, it allows managers to test and differentiate the possible results according to the relevant information that it provides to make a decision.

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