Which of the Following Is Not an Assumption of the Rational

question 52

Multiple Choice

Which of the following is not an assumption of the rational decision- making model?

• A)maximum payoff
• B)decision criteria change
• C)problem clarity
• D)no time or cost constraints

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Definitions:

Marginal Cost

The costs entailed in generating an extra unit of a product or service.

Economies of Scale

The reduction in per-unit production costs resulting from an increase in the scale of production.

Service Provider

A company or an individual that offers services to others in exchange for payment, such as telecommunications, utilities, or healthcare.

Opportunity Costs

The cost of the most favorable alternative that is lost by deciding on a particular option.