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    Question

    As per bounded rationality, the decision making is

    limited by certain factors like cognitive limitations. Cognitive limitations refer to _____
    A Limitations due to lack of time Correct Answer Incorrect Answer
    B Limitations due to lack of resources Correct Answer Incorrect Answer
    C Limitations due to mental processing capability Correct Answer Incorrect Answer
    D Limitations due to inability to collect all information Correct Answer Incorrect Answer
    E Limitations due to inability to recognise the correct decision maker Correct Answer Incorrect Answer

    Solution

    Bounded rationality is based on three main limitations that result in sub-optimal decision making: 1. Cognitive Limitations, 2. Imperfect Information, and 3. Time Constraints Cognitive limitation refers to our inability as humans to process information in an optimal manner.

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