According to Simon's Theory of Bounded Rationality,people Tend to Use

question 282

Multiple Choice

According to Simon's theory of bounded rationality,people tend to use

• A) simple strategies in decision making that focus on only a few facets of available options and often result in irrational decisions that are less than optimal.
• B) complex strategies in decision making that focus on multiple facets of available options and often result in irrational decisions that are less than optimal.
• C) simple strategies in decision making that focus on multiple facets of available options and often result in rational decisions that are optimal.
• D) complex strategies in decision making that do not focus clearly on enough facets of available options and often result in rational decisions that are less than optimal.

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Definitions:

Margin

The difference between the selling price of a product and its cost of production, often expressed as a percentage of sales.

Operating Data

Information related to the daily operations of a business, which can include sales figures, production costs, and inventory levels.

Margin

The difference between the selling price of a product and its cost, expressed as a percentage of the selling price, indicating the profitability of the product.

Investment Opportunity

An option for investing capital with the expectation of achieving a return, often evaluated based on potential risks and rewards.