The theory of consumer choice is to demand as the theory of
A)public goods is to supply.
B)oligopoly is to supply.
C)the competitive firm is to supply.
D)comparative advantage is to supply.

Question

Quizplus · Accepted Answer

The theory of consumer choice focuses on how consumers make decisions regarding what to buy and how much to buy, based on their preferences and budget constraints. This is directly related to the behavior of the competitive firm, which also makes decisions about what to supply and how much to supply based on market conditions and costs of production. On the other hand, public goods and oligopoly are related to market structures, while comparative advantage is related to international trade. Therefore, the best choice is C.

The Theory of Consumer Choice Is to Demand as the Theory