Question

A full page answer Modern microeconomics, specifically consumer theory, is based on utility theory—consumers maximize their...

A full page answer

Modern microeconomics, specifically consumer theory, is based on utility theory—consumers maximize their utility.

How about Kuhn or Lakatos?

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Consumer choice is related to consumption and consumer demand curves in microeconomics. In consumer theory, the consumer utilizes their desire to consume any product in their expenditure limit. They try to maximize their utility according to their budget. This theory decides how consumers decide to sped the money they have with their budget constraints. The choices they make with given constraints and restrains. By learning consumer theory, manufacturers can understand the customer tastes and also can influence demand curve. Consumers choose a variety of goods and services, they make these choices by trying to get maximum benefit. This is called utility maximization by customers.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A full page answer What is the empirical basis for utility theory?
A full page answer What is the empirical basis for utility theory?
describe the concept of utility and explain how consumers spend in order to maximize utility? Please...
describe the concept of utility and explain how consumers spend in order to maximize utility? Please elaborate on this: Utility is value / satisfaction attained by consumers from consuming a good. Consumer maximize utility when marginal utility per dollar (marginal utility / dollar) of a good is maximized where marginal utility is extra utility attained from consuming additional unit.
A full page answer (write an essay of at least three paragraphs) What are the key...
A full page answer (write an essay of at least three paragraphs) What are the key elements of the classical school (Ricardo, Senior, Mill, Malthus)? Make sure to discuss their theory of growth and wages and compare it to more modern views.
full page answer: What is Malthus’ theory of economic growth (or lack of growth)? Has it...
full page answer: What is Malthus’ theory of economic growth (or lack of growth)? Has it ever been valid?
Allocating Income to Maximize utility is essential in microeconomic theory, based on the following figures, where...
Allocating Income to Maximize utility is essential in microeconomic theory, based on the following figures, where P of A = 3 OMR and P of B = 6 OMR Q TU of A TU of B MU of A MU of B MUA/P MUB/P 1 12 21 2 22 33 3 28 42 4 32 48 5 34 51 6 34 51 The Required: Fill the table above Explain when the Utility maximization holds
Please discuss, give full answer. "considering the Theory of Consumer Choice, which needs to you fulfill...
Please discuss, give full answer. "considering the Theory of Consumer Choice, which needs to you fulfill first when making buying decisions." Thank you.
Which of the following best describes the assumption on which indifference theory is based? Select one:...
Which of the following best describes the assumption on which indifference theory is based? Select one: A. Consumers can always say which of two consumption bundles they prefer without having to say by how much they prefer it. B. The consumer receives the same utility and is therefore indifferent between any two consumption bundles. C. Consumers are not able to rank consumption bundles in order of preference. D. The consumer is able to quantify the difference in total utility received...
Most economic models 
a. incorporate the assumption of rational behavior on the part of economic actors....
Most economic models 
a. incorporate the assumption of rational behavior on the part of economic actors. b. incorporate the notion that people are usually reluctant to change their minds. c. are meant to precisely duplicate reality.
d. assume that people often make sub-optimal choices. 
 When economists assume that people are rational, they assume that a. consumers maximize profits.
b. firms maximize revenues.
c. consumers maximize utility. 
d. firms maximize output. 
 The basic theory of consumer behavior is based on which...
Consider a one-period closed economy, i.e. agents (consumers, firms and government) live for one period, consumers...
Consider a one-period closed economy, i.e. agents (consumers, firms and government) live for one period, consumers supply labor and demand consumption good, whereas their utility function is in the form of log(C−χN1+ν/1+ν ) (GHH preference). Firms supply consumption good and demand labor and their production function is y = zN^1−α. The government finances an exogenous spending via lump-sum taxes. Suppose there is a positive shock on χ which means the consumers favor leisure (or dislike labor) by much more than...
Total utility can be objectively measured in numbers that indicate usefulness or benefit to the consumer....
Total utility can be objectively measured in numbers that indicate usefulness or benefit to the consumer. ____ 2. Consumers should purchase quantities of a good to the point where MU > P. ____ 3. Voluntary exchange requires that there must be mutual gain. ____ 4. Points along a budget line represent the maximum combinations of two commodities that a consumer can afford. ____ 5. The budget line represents a consumer's preferences for a commodity. ____ 6. A change in consumer...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT