A defense for the assumption that consumers maximize is that
A)it allows for many possible outcomes.
B)mistaken consumers may receive counseling from the government.
C)mistakes by the consumer are not likely to last for a long time.
D)mistakes by consumers only last for two periods.
E)consumers never make mistakes.

Question

Quizplus · Accepted Answer

The assumption that consumers maximize their utility is based on the idea that consumers make rational choices to achieve their desired outcome. While consumers may make mistakes in their decision making process, these mistakes are not likely to last for a long time. Over time, consumers can learn from their mistakes and adjust their behavior accordingly. Therefore, the assumption that consumers maximize their utility is a reasonable one, as it allows for consumers to make mistakes without necessarily undermining the overall efficiency of the market.

A Defense for the Assumption That Consumers Maximize Is That