ECON MICRO
5th Edition
ISBN: 9781337000536
Author: William A. McEachern
Publisher: Cengage Learning
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Question
Chapter 14, Problem 5.12P
To determine
The Limitations challenging the rational economic decision making.
Concept Introduction:
Rational decision making is when people take a logical decision between choices available to gain maximum satisfaction in return.
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Discussion Prompt: What are the limits of
rational decision-making?
1. The rules regarding economic decision
maker behavior are:
Group of answer choices
A: Consumers behave rationally and
maximize utility, but producers do not
behave rationally
B: Producers behave rationally and
maximize profits, but consumers do not
behave rationally
C: consumers are ratiional and maximize
utility, and producers are rational and
maximize profits
D: Consumers maximize total
consumption, and producers maximize
production
1 explain the role of ceteris paribus in economic analysis
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