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For example, we must all determine our budget for food, necessities, and leisure activities and allocate those budgets within those categories. We must also determine how much of our time we will work each week and how much of our remaining time we will spend with our children, surfing the Internet, watching television, and the like. Firms continually face such resource allocation challenges. They must determine how much to spend on new product development and how to allocate those funds across projects and time. Charitable organizations must determine what their development budget should be and what past donors or prospects to target...
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