In traditional economic theory, consumers are assumed to be rational, which means that they:

A) attempt to maximize utility, subject to a budget constraint, and they do so with a limited knowledge about prices.
B) have full knowledge of prices and attempt to maximize utility, subject to a budget constraint.
C) look to maximize utility, often without regard to income or prices.
D) behave in unpredictable but observable ways of choosing goods and services.

In traditional economic theory, consumers are assumed to have full knowledge of prices and attempt to maximize utility, subject to a budget constraint. This assumption is based on the idea of marginal utility, which states that consumers will continue to consume goods and services until the marginal utility (the additional satisfaction gained from consuming one more unit of a product) decreases to the point where it no longer justifies the cost. This implies that consumers make rational decisions based on their limited budgets and the prices of the goods and services available to them.