Peter was looking for alternatives to double his plant's production capacity, and he considered acquiring the production plant of a rival company. The engineers in Peter's company advised him against it because acquiring the new plant would only increase their company's production by 15 percent. Therefore, Peter's idea failed the test for _____ in the context of the rational decision-making process.
A) feasibility
B) satisfactoriness
C) bounded rationality
D) satisficing
E) escalation of commitment

Question

Quizplus · Accepted Answer

Peter's idea failed the test for satisfactoriness. The third step in the rational decision-making process is evaluating each of the alternatives. Each alternative should be evaluated in terms of its feasibility, satisfactoriness, and consequences.

Peter Was Looking for Alternatives to Double His Plant's Production