Which of the following is true about the definition of bounded rationality?
A) Managers rely on their inborn ability to synthesize information quickly and effectively.
B) Managers have access to complete and accurate information for making a decision.
C) Managers adhere to rules of the thumb when making decisions.
D) Statistical probabilities can be attributed to alternative potential outcomes.
E) Managers do not always have access to the resources required to make rational decisions.

Question

Quizplus · Accepted Answer

Bounded rationality acknowledges that managers often have limitations in their ability to access, process, and utilize all available information when making decisions. This can be due to time constraints, limited resources, or cognitive limitations. As such, managers may rely on heuristics or rules of thumb to simplify the decision-making process.

Which of the Following Is True About the Definition of Bounded