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The theory of consumer behavior assumes that
1. marginal utility is constant.
2. consumers behave rationally, attempting to maximize their satisfaction
3. consumers do not know how much marginal utility they obtain from successive units of various products.
4. consumers have unlimited money incomes.
d. The Theory of Consumer Behavior: i. Explain the key dimensions of the Theory of Consumer Behavior and what the theory tells us. ii. Explain how well the theory of consumer behavior reflects reality.