Question

A firm acts as a rational decision maker when its leaders decide to do which of the following?

a) Solely using labor in a production process, rather than a combination of labor and capital
b) Cut hours and workers in order to minimize costs
c) Entice investors by promising lower than average returns on investment
d) Using all of its resources in order to maximize production, regardless of profit

Answer 1

b) Cut hours and workers in order to minimize costs

Step-by-step explanation:

Rational decision making is the process by which a business manager analyses different factors and outcomes before choosing a particular line of action.

The manager will have to choose between alternative options that are available.

In the given instances only the option to cut hours and workers in a bid to reduce cost shows the manager made a decision to achieve a goal (cost reduction).

The other options do not define a clear business goal and a strategy to achieve it