"Rational choice of consumers" is said to exist when Select one:None of the options are correctAll of the options are correct People weigh the costs and benefits of each possibility in a reasonable mannerIn case of firms, rational assumption is to mean that firms operate to maximize profitPeople make decisions and choices in pursuit of his own self interest

Answered: Rational choice of consumers" is said…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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"Rational choice of consumers" is said to exist when

Select one:

None of the options are correct
All of the options are correct
People weigh the costs and benefits of each possibility in a reasonable manner
In case of firms, rational assumption is to mean that firms operate to maximize profit
People make decisions and choices in pursuit of his own self interest

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Step 1

Introduction

The rational choice for the consumer is that he would behave in a rational manner. The rational theory has three main concepts such as rational actors, self-interest, and the invisible hand. This theory explained that consumers can maximize their preferences.

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