Bounded rationality assumes that managers _____ because the costs of optimizing in terms of time and effort are too great.
A)satisfice
B)optimize
C)examine facts and details
D)reject heuristics

Question

Bounded rationality assumes that managers _____ because the costs of optimizing in terms of time and effort are too great.​
A)​satisfice
B)​optimize
C)examine facts and details​
D)​reject heuristics

Quizplus · Accepted Answer

Bounded rationality theory suggests that managers seek to satisfice rather than optimize when making decisions because the costs of collecting perfect information and thoroughly examining all options are often too high. Satisficing involves selecting the first option that meets minimum criteria or is "good enough" rather than exhaustively considering all alternatives.

Bounded Rationality Assumes That Managers _____ Because the Costs of Optimizing