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Author Question: Why do economists sometimes treat decision makers as boundedly ... (Read 45 times)

Tirant22

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Why do economists sometimes treat decision makers as boundedly rational?

Question 2

As I add more workers to the factory line, the additional output produced by each additional worker seems to decline. Eventually, the workers just get in each others' way.. This statement by a factory supervisor refers to the law of:
 a. comparative advantage.
  b. demand.
  c. supply.
  d. increasing returns to scale.
  e. diminishing marginal returns.



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af

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Answer to Question 1

Economists often treat decision makers as boundedly rational because decision makers try their best for rationality but are constrained by limited information and limited processing abilities.

Answer to Question 2

e



Tirant22

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af

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