Utility theory holds that rational consumers will allocate their limited incomes so as to maximize their happiness.

Name: Utility theory holds that rational consumers will allocate their limited incomes so as to maximize their happiness.
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Utility theory posits that consumers behave rationally, making choices to allocate their limited resources (such as income) in a way that maximizes their utility, or satisfaction/happiness, from consumption.

Utility Theory Holds That Rational Consumers Will Allocate Their Limited