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Law Incorporation [45]
4 years ago
8

Bounded rationality means​ that: A. individuals violate the assumption of completeness in ranking preferences. B. people have a

limited capacity to​ anticipate, solve complex​ problems, or enumerate all options. C. individuals can become satiated in their consumption of a particular product. D. individuals make correct decisions regarding monetary gains but not losses
Social Studies
1 answer:
Marrrta [24]4 years ago
6 0

Answer:

B. people have a limited capacity to​ anticipate, solve complex​ problems, or enumerate all options.

Explanation:

Bounded rationality is a concept that was proposed by Herbert A. Simon. This concept explains that an individual's ability to make a decisions or solve complex problems can be limited by the available information to the individual and also the mental capabilities or strength of the individual. In other words, cognitive limitations of the mind can affect decision making and problem solving.

For example, an individual limited knowledge on gadgets can make him/her purchase a gadget of low quality.

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