When economists assume that people are rational, they assume that
A)consumers maximize profits.
B)firms maximize revenues.
C)consumers maximize utility.
D)firms maximize output.

Question

Quizplus · Accepted Answer

Economists assume that consumers are rational in the sense that they seek to maximize their utility, which means they aim to achieve the highest level of satisfaction possible with their available resources.

When Economists Assume That People Are Rational, They Assume That