What Does the Statement "Households Maximize Utility" Mean

question 81

Multiple Choice

What does the statement "Households maximize utility" mean?  

• A) that households are only interested in maximizing their earnings 
• B) that households are assumed to buy useful things before they buy luxuries 
• C) that households are only interested in acquiring material wealth 
• D) that households are assumed to do what they think will increase their satisfaction

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Definitions:

Returning Damaged Merchandise

The process of sending back defective or damaged products to the retailer or manufacturer for a refund, replacement, or repair.

Salespeople

Individuals engaged in selling products or services to customers, often employing various techniques to meet their sales targets.

Product Knowledge

An understanding of a product's features, benefits, and use, essential for salespeople to effectively persuade customers to buy.

Customer Service

The help and service given by a business to its customers who purchase or utilize its goods or services.