When a Decision Maker Chooses an Alternative Under Perfect Rationality

question 28

Multiple Choice

When a decision maker chooses an alternative under perfect rationality, she___________ her decision, whereas under bounded rationality she chooses a___________ decision.

• A) maximizes; minimizing
• B) minimizes; satisficing
• C) satisfices; maximizing
• D) maximizes; satisficing

---

Definitions:

Ambiguity

The quality of being open to more than one interpretation; lack of clarity in communication or information.

Conflict

A situation where two or more parties have incompatible goals, interests, or values leading to disagreement or opposition.

Equipment Malfunction

A situation where machinery or technical equipment fails to operate correctly or breaks down during use.

Concerned Authorities

Refers to the relevant officials or organizations that have control or jurisdiction over a particular area or issue.