Question
When we model consumer decisions as discrete choices where consumers make rational, utility maximizing choices subject to their budget constraint, we can assume the following:Which
When we model consumer decisions as discrete choices where consumers make rational, utility maximizing choices subject to their budget constraint, we can assume the following:Which of all of these are true ?
The consumer makes their decisions based on relative utility of the available options
The consumer's choice will reveal the option that maximizes utility
We must estimate the utility of each consumption option
A consumer does not face opportunity costs because they only have a discrete choice between limited options
Prices will limit the utility that can be achieved by a consumer
Consumer preferences and tastes will not affect utility since utility is a absolute measure
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