Asked by Devraj Basnet on Jun 01, 2024
Verified
The theory of consumer choice provides the foundation for understanding the
A) structure of a firm.
B) profitability of a firm.
C) demand for a firm's product.
D) supply of a firm's product.
Consumer Choice
The range of preferences and decisions consumers face regarding the use of products, influenced by income, price, tastes, and preferences.
Demand for Product
The quantity of a good or service that consumers are willing and able to purchase at various prices during a specified period.
- Understand the theoretical underpinnings of consumer choice theory in the context of demanding firm products.
Verified Answer
ZK
Zybrea KnightJun 06, 2024
Final Answer :
C
Explanation :
The theory of consumer choice is primarily concerned with how consumers make decisions regarding the allocation of their resources, particularly in terms of purchasing goods and services. This directly influences the demand for a firm's product, as it is based on consumer preferences and income constraints.
Learning Objectives
- Understand the theoretical underpinnings of consumer choice theory in the context of demanding firm products.
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