Question

question 7
the optimal level of representation happens when...
○ external costs are minimized
○ decision - making costs are minimized
○ the sum of external and decision - making costs is minimized
○ external costs are minimized and decision - making costs are maximized

Explanation:

In decision - making and representation theory, the optimal level is achieved when the total cost (sum of external and decision - making costs) is minimized. Minimizing only external costs or only decision - making costs doesn't guarantee optimality, and maximizing decision - making costs while minimizing external costs is counter - intuitive for optimality.

Answer:

the sum of external and decision - making costs is minimized