Final answer:
A poor decision can still be made by a manager even if they have all available information due to bounded rationality.
Step-by-step explanation:
A poor decision can still be made by a manager even if they have all available information due to bounded rationality.
Bounded rationality is a concept that suggests that humans have cognitive limitations that prevent them from fully processing and analyzing all available information.
While a manager may have access to all the information, they may not have enough time, cognitive capacity, or resources to comprehensively analyze and evaluate every piece of information. As a result, they may make a decision that is suboptimal or does not fully consider all relevant factors.
For example, a manager may be aware of market trends, consumer preferences, and competitor strategies, but due to limitations in their cognitive abilities, they may fail to accurately predict future market conditions or identify potential risks and opportunities.