Courses
›
Cambridge IGCSE Economics (0455)
›
Econ_level 2_economic Principles_economic Assumptions And Behavioural Economics
G
Notes
Flashcards
Assessment
Video
1 / 6
Question
What is the standard assumption about consumer behaviour?
Tap to reveal
Answer
Consumers aim to maximise the benefit, or utility, they gain from their spending.
Tap to see the question
1
What is the standard assumption about consumer behaviour?
2
What is the standard assumption about firm behaviour?
3
Give three reasons consumers may not maximise their benefit.
4
Why might a firm's managers pursue revenue or sales maximisation instead of profit maximisation?
5
Give two reasons a producer may not maximise profit.
6
Why do economists still use the profit- and benefit-maximising assumption despite these departures?