The Three Main Models That Managers Use to Make Decisions

question 89

Multiple Choice

The three main models that managers use to make decisions are ________.

• A)rational, bounded rational, and intuitive
• B)rational, irrational, and bounded rational
• C)intuitive, unintuitive, and rational
• D)bounded rational, intuitive, and systematic

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Definitions:

Average Total Cost

The total cost of production (fixed plus variable costs) divided by the total quantity produced, representing the per-unit cost of production.

Average Total Cost

The total cost of production divided by the number of goods produced, representing the per-unit production cost.

Producing

The process of creating goods or services through the combination of labor, materials, and technology.

Scale

In economics, scale refers to the level at which a business or activity is operating regarding its volume of production or size.