Which of the Following Is Not an Assumption of the Theory

question 308

Multiple Choice

Which of the following is not an assumption of the theory of consumer behavior described in this chapter?

• A)The consumer has to make purchasing decisions within a given budget constraint.
• B)The consumer experiences diminishing marginal utility from consuming goods.
• C)The consumer's tastes and preferences continually change within the period studied.
• D)The consumer aims to get maximum total utility out of a given budget.

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Definitions:

Producing Units

Entities within an organization responsible for the creation of products or services.

Corn

A cereal plant that yields large kernels set in rows on a cob; an important crop for food, animal feed, and industrial products.

Bushel

A unit of volume used primarily in the United States for measuring agricultural commodities, equivalent to approximately 35.24 liters.

Marginal Costs

The additional cost incurred in producing one more unit of a good or service, critical in decision-making regarding production volumes.