When Managers Cannot Assign Probabilities of Future Occurrence to Possible

question 73

Multiple Choice

When managers cannot assign probabilities of future occurrence to possible alternatives with a decision, this is known as

• A)certainty.
• B)risk.
• C)bounded rationality.
• D)uncertainty.

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Definitions:

Units of Labor

A measurement in economics indicating the quantifiable effort or work provided by labor forces, often used to determine productivity or cost in production processes.

Capital

Financial assets or the financial value of assets, such as funds held in deposit accounts and/or the physical factories, machinery and equipment used to produce goods.

Profit-Maximizing Amounts

The levels of output or operation at which a business achieves the highest possible profit, determined by analyzing costs and revenues.

Total Outlay

The total amount of money spent or investment made in acquiring an asset, completing a project, or pursuing an activity.