Asked by Courtney Mowat on Jul 27, 2024
Verified
According to behavioral economists, rational consumers are able to make decisions when faced with many choices because preferences are complete.
Rational Consumers
Individuals who aim to maximize their utility or satisfaction from consumption under the constraints of their budget.
Complete Preferences
A concept in economics where an individual's preferences over a set of goods or outcomes are fully defined, allowing for every pair of outcomes to be compared.
- Recognize the limitations of rational choice theory in explaining consumer behavior.
Verified Answer
KW
Khalil WhitfieldJul 27, 2024
Final Answer :
False
Explanation :
Behavioral economists argue that consumers are not always rational and may struggle to make decisions when faced with too many choices, even if their preferences are complete. This is known as the paradox of choice.
Learning Objectives
- Recognize the limitations of rational choice theory in explaining consumer behavior.
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