If decision makers have limited ability to calculate profits from all possible combinations of options,they are said to have

Question

Quizplus · Accepted Answer

Bounded rationality refers to the limitation of decision makers to calculate profits from all possible combinations of options. It is a recognized concept in decision-making theory. The other options, dementia, Pareto inefficiency, and maximum problem, do not accurately describe this limitation in decision-making ability.

If Decision Makers Have Limited Ability to Calculate Profits from All