Determine the theory of consumer behaviour, Managerial Economics

Assignment Help:

Theory of consumer behaviour

The role of customers in an economy is of significant importance because consumers spend most of their incomes on services and goods produced by firms. Consumers consume what firms produce. So study of the theory of consumer behaviour is accorded importance. It is keen to know the ultimate objective of a consumer. Economists have an optimisation model for consumers that is analogous to which applied to producers or firms. Though it's presumed that firms attempt at maximising profits, likewise there is an assumption that consumers attempt at maximising their satisfaction orutility. Though more services and goods provide greater utility to a consumer, though, consumers, like firms, are subject to constraints. Their choices and consumption are limited by a number of factors, comprising the amount of disposable income (residual income after income taxes are paid for). A consumer's choice to consume is defined by economists within a theoretical framework generally termed the theory of demand. 


Related Discussions:- Determine the theory of consumer behaviour

Describe the forecasting method in managerial economics, Describe the Forec...

Describe the Forecasting method in managerial economics It is a technique or a method to predict many future aspects of a business or any other operation. For illustration, a r

Define thevariable factor of production, Define theVariable factor of produ...

Define theVariable factor of production The input level of a variable factor of production can be diverse in the short run. Raw material inputs are believed as variable fact

Economic theory, How does economic theory contribute to managerial decision...

How does economic theory contribute to managerial decisions?

Short run equilibrium of a firm under monopoly, The short run equilibrium o...

The short run equilibrium of monopolist is displayed below in figure. Figure: Abnormal Profit under Monopoly AR is the average revenue curve, MR is marginal revenue cu

Factors influencing exchange rates, Factors influencing Exchange Rates ...

Factors influencing Exchange Rates i.  Inflation:   Other things being equal, a country experiencing a high rate of inflation will experience a lower demand for its goods whil

Assignment question, define scarcity and opportunity cost.Show how these co...

define scarcity and opportunity cost.Show how these concept are useful in managerial decision making

Using factor incomes for calculating national income, Using Factor Incomes ...

Using Factor Incomes for Calculating National Income     A second method is to sum up all the incomes to individuals in the form of wages, rents, interests and profits t

Ramsey pricing in detail, Hi Could you please help me with " Ramsey pricing...

Hi Could you please help me with " Ramsey pricing in detail " as I have an assignment.

Economies and diseconomies of scale, Economies and diseconomies of scale ar...

Economies and diseconomies of scale are of two types- external andinternal. Internal economies and diseconomies are those which a firm reaps as a result of its own expansion. Conve

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd