If Individuals Behave Irrationally in Some Circumstances, Why Do Economists

question 45

Multiple Choice

If individuals behave irrationally in some circumstances, why do economists typically assume that they behave rationally?​

• A)​The assumption of rationality allows economists to make powerful statements that apply the majority of the time.
• B)​The assumption of rationality was used before psychologists discovered ways in which individuals behave irrationally.
• C)​The assumption of rationality is used because economists do not understand principles of psychology.
• D)​The assumption of rationality has yet to be refuted with scientific evidence.

Realize the potential customer perceptions of revenue management strategies.

Master the application of revenue management in scenario-based examples.

Discover the trade-offs in committing to orders from buyers at different pricing tiers.

Understand the principles of dynamic and static pricing strategies.

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The space between the top edge of a page and the first line of text or content.

Header Button

A control in software that allows users to configure or modify the header section of a document or table.