According to the concept of bounded rationality, managers make decisions rationally, but are limited by their ability to process information.

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Bounded rationality is a concept that suggests that managers are rational in their decision-making, but their ability to process information is limited by factors such as time, information overload, and cognitive biases. Therefore, they may not always make perfectly rational decisions, but they still try to make the best decisions possible given their limitations.

According to the Concept of Bounded Rationality, Managers Make Decisions