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Because info is costly to obtain, individuals make rational decisions __ the luxury of complete information

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User Samack
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Final answer:

Individuals make rational decisions despite the lack of complete information due to the cost associated with obtaining complete information. They rely on the information that is readily available to them, even though it may be imperfect or limited.

Step-by-step explanation:

In the context of decision-making, individuals make rational decisions despite the lack of complete information. This is because obtaining information can be costly, both in terms of time and effort. Therefore, individuals often make decisions based on the information that is readily available to them at any given moment, even if it is not perfect or complete.

For example, imagine a student deciding whether to take on a double major in college. They may not have all the information about the impact on their workload, future career prospects, and personal interests. However, based on the information they do have, such as their current course load and the potential benefits of having two majors, they can make a rational decision.

In summary, individuals make rational decisions despite incomplete information due to the cost associated with obtaining complete information. They rely on the information that is readily available to them, even though it may be imperfect or limited.

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User Furqan Aziz
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