The Principle That Consumers and Firms Optimize

question 5

Multiple Choice

The principle that consumers and firms optimize

• A)is not helpful because some economic agents may behave irrationally.
• B)is helpful because it determines the available technology.
• C)is explained by their work-leisure choices.
• D)only applies to perfectly competitive markets.
• E)is helpful because it allows us to analyze how economic agents respond to changes in their environment.

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