Consumer behavior and the utility maximization theory

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Reference no: EM132306002

Write a paper on Decision Making Analysis.

Paper Format

Abstract
Introduction
Theories of the firm
Consumer behavior
Production and scarcity
Income elasticity of demand
Cost
Decision making under uncertainty
Pricing under perfect competition
Conclusion
References

The assignment is about the case study of the company named Fonterra based in New Zealand. The company deals with the production of milk and related products. The company has experienced losses in the year 2018 and now forecasting its production for 2019. The company foresees a decrease in the price of milk in the coming years and hence, tries to evaluate the impact on the demand and hence, the output of milk to be produced to meet the demand. The assignment uses various economics based concepts to analyze the case

The first is related to the theories' of the firm and what is the objective of the firm vis-à-vis the owners of the company. The second question deals with the consumer behavior and the utility maximization theory of indifference curves and budget lines. The third deals with the production possibilities and the decisions under scarcity. The other questions deals with the income elasticity of demand, the costs, the decisions to be made under scarcity and the numerical problem for calculating the equilibrium price and quantity.

Reference no: EM132306002

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