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Semenov [28]
3 years ago
11

The theory of consumer behavior assumes that - consumers behave rationally, attempting to maximize their satisfaction - consumer

s do not know how much marginal utility they obtain from successive units of various products - consumers have unlimited money incomes - marginal utility is constant
Business
1 answer:
earnstyle [38]3 years ago
7 0

Answer:

Consumers behave rationally, attempting to maximize their satisfaction.

Explanation:

The principle assumption upon which the theory of consumer behavior and demand is built is:

A consumer attempt to allocate their limited money income among available goods and services so as to maximize their utility (satisfaction).

Utility is described as an amount of satisfaction derived from the consumption of a commodity. Measurement units is utils.

Assume that consumers have complete information about availability, prices and utility levels of all goods and services. All bundles of goods can be ranked based on their ability to provide utility.

The theory is useful for understanding the demand side of the market.

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steposvetlana [31]

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The present value of the project is $72349.51.

Since we consider only incremental cash flows for a project, we consider $21,600 for year one and calculate a 4% increase for each of the additional years.

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8 0
3 years ago
The opportunity cost of​ tesla's investment in a new battery factory in nevada is
Alex787 [66]
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5 0
3 years ago
With the recent surge in the showing of commercials to movie theater audiences, many companies have found it to be an innovative
inysia [295]

Answer:

Self selection.

Explanation:

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Artyom0805 [142]

Answer:

5678

Explanation:

45678

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