Alvin, the production manager at the Paragon Company, wants to select the best supplier of raw materials from among several vendors. He has several choices and has done research into which company provides the best services and products. One company is known to be extremely timely, another is much lower in price but often late in deliveries, and the third is well-known to provide the highest quality products available.
According to the Rational Choice Paradigm of decision making, Alvin should select the vendor that offersthe most:
a. discounts.
b. deliveries.
c. utility.
d. expectancy.
e. quality.

The correct answer is letter "C": utility.

Explanation:

Rational Choice Paradigm assumes that individuals will always make the most beneficial prudent and logical decisions. According to this theory, individuals select the choice with the highest utility after calculating their expected utility which is the actual satisfaction those individuals expect to obtain.

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