Whenever consumers make decisions with limited information,the decision reflects:
A) perfect rationality.
B) perfect irrationality.
C) bounded rationality.
D) unbounded rationality.
E) confounded rationality.

Question

Quizplus · Accepted Answer

Bounded rationality refers to the idea that consumers may not have access to all the information needed to make perfectly rational decisions, and thus may make decisions based on a limited amount of information. This means that consumers may make decisions that are less than completely rational, but are still within the bounds of what is reasonable given the information available.

Whenever Consumers Make Decisions with Limited Information,the Decision Reflects