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3 Tutorials that teach Decision Making Relationships: Rational Consumer
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Decision Making Relationships: Rational Consumer

Decision Making Relationships: Rational Consumer

Author: Catherine Barry
Description:

This lesson will explain the economic idea of the rational consumer.

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Tutorial

Notes on "Decision Making Relationships: Rational Consumer"

Terms to Know   

Rational Consumer

A consumer who considers choices based on factual information weighing opportunities and limited income or assets.

Opportunity Costs

The sacrifice made by choosing one value or opportunity over another.

Utility Maximization 

Achieving the highest amount of satisfaction (utility) subject to an individual's budget constraint.

Finite Resource

A fixed amount of supply that is irreplaceable and non-recoverable.

Utility

Gratification received from consuming a product or service.