How do consumers make their choices according to neoclassical economic theory?
Thanks very much for your help :)
- MattLv 62 months agoFavourite 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.