When some important variables that enter into economic decision making are not observable until after a decision has taken place, firms are said to operate in an environment of:

Question

Quizplus · Accepted Answer

When firms make decisions without having access to all relevant information, particularly about important variables that will only become observable after the decision is made, they are operating in an environment of imperfect information. This scenario describes situations where the lack of complete, accurate, and timely information affects decision-making processes.

When Some Important Variables That Enter into Economic Decision Making