The theory of consumer behavior assumes that:

A) consumers behave rationally,attempting to maximize their satisfaction.
B) consumers have unlimited money incomes.
C) consumers do not know how much marginal utility they obtain from successive units of various products.
D) marginal utility is constant.

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Keasia Fatemi · Accepted Answer

Final Answer : A, Explanation :  The theory of consumer behavior is based on the assumption that consumers behave rationally, attempting to maximize their satisfaction or utility. This means that consumers make choices based on their preferences, budget constraints, and the prices of the available goods and services, aiming to achieve the highest level of satisfaction possible. The other choices are incorrect: B is false because consumers have a limited budget constraint and cannot buy unlimited amounts of goods and services; C is false because the theory of consumer behavior assumes that consumers have knowledge of their preferences and the utility they derive from consuming different goods and services; and D is false because marginal utility is generally assumed to decline as the consumption of a good or service increases.

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The theory of consumer behavior assumes that:A) consumers behave rationally,attempting to maximize their satisfaction.B) consumers have unlimited money incomes.C) consumers do not know how much marginal utility they obtain from successive units of various products.D) marginal utility is constant.

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