The Rationality Assumption States That

question 292

Multiple Choice

The rationality assumption states that

• A) all actions taken by consumers are based on what is good for society.
• B) people make decisions regardless of how the outcome will affect them.
• C) people make decisions to buy only those goods that they need rather than goods that they want.
• D) people do not intentionally make decisions that would leave them worse off.

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Definitions:

Competitive Advantage

The attributes that allow an organization to outperform its competitors, including cost structure, product offerings, market positioning, and customer service.

Skills and Technologies

The abilities and knowledge that individuals have, along with the tools and machines they use, to perform specific tasks or solve problems.

Competencies

A set of defined skills, knowledge, abilities, and attributes that are needed to perform a job effectively.

Strategic Focus

Emphasizes the long-term planning and prioritization of resources and activities towards achieving overarching goals and objectives in an organization.