The Term Bounded Rationality Is Used to Explain _____

Multiple Choice

The term bounded rationality is used to explain _____

A) the output level at which economies of scale are fully exploited.
B) the competition among rival suppliers that ensures a steady supply of a resource.
C) the cost advantage derived from producing two or more goods in one firm rather than outside.
D) the managerial incompetence that reduces the profitability of certain firms.
E) the limit on the amount of information a manager can comprehend about a firm's operation.