1.2.1 - Rational decision making
a) The underlying assumptions of rational
economic decision making:
• Consumers aim to maximise utility;
• Firms aim to maximise profits
1.2 - How 1.2.10 - Alternative views of consumer
Markets behaviour
Work a) The reasons why consumers may not
behave rationally:
• consideration of the influence of
other people’s behaviour;
• the importance of habitual
behaviour;
• consumer weakness at
computation.
, 1.2.1 - Rational
decision-making
What are the underlying ass
umptions of rational econo
mic decision making?
a) The underlying assumptions of rational
economic decision making:
• Consumers aim to maximise utility;
• Firms aim to maximise profits
1.2 - How 1.2.10 - Alternative views of consumer
Markets behaviour
Work a) The reasons why consumers may not
behave rationally:
• consideration of the influence of
other people’s behaviour;
• the importance of habitual
behaviour;
• consumer weakness at
computation.
, 1.2.1 - Rational
decision-making
What are the underlying ass
umptions of rational econo
mic decision making?
