MHR 623: MHR 623 - Week 3

Non-rational decisions are generally the result of either Satisficing or Intuition. Think about a time when you made a non-profit rational decision on the job or in your personal life. Was it the result of Satisficing or inttion? How would your decision have been different using the four steps for raional decision making? How would the steps have helped you to make a better or more sould, decision?

What is the intuition behind the profitability index rule? What is its decision criterion? What are some of its drawbacks?

Using your recent acquisition of economic knowledge, your intuition, and a lifetime's worth of experience, answer this;

Why is it that people prefer to have choices when it comes to buying things?