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Understanding consumer behavior is the first step in making profitable pricing, advertising, product design, and production decisions, that is why the theory of consumer behavior

Understanding consumer behavior is the first step in making profitable pricing, advertising, product design, and production decisions, that is why the theory of consumer behavior is an important tool in economics. Explain the concept of utility, the basic assumptions of the consumer preferences and the law of diminishing marginal utility. On what conditions do you think there would be no problem of economizing and consumers would have no problem of choice (i.e can consume unlimited goods)

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