tim asked in Social ScienceEconomics · 2 months ago

How do consumers make their choices according to neoclassical economic theory?

Thanks very much for your help :)

1 Answer

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  • Matt
    Lv 6
    2 months ago
    Favourite answer

    Neoclassical theory assumes that consumers are perfectly rational, have perfect information about the market, and will always look to maximize their own utility. In reality this is never true, humans are not rational creatures, we never have perfect information and we don't always maximize our own utility.

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