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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: Justin Tapp
Description:

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

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Tutorial

Notes on "Decision Making Relationships: Rational Consumer"

Key Terms

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 nonrecoverable.
 

Utility

Gratification received from consuming a product or service.