Observations of real-world situations that appear to violate a consumer optimum could be offered as evidence favoring
A) utility analysis.
B) bounded rationality.
C) diminishing marginal utility.
D) zero marginal utility at a utility-maximizing point.

Question

Quizplus · Accepted Answer

Observations of real-world situations that appear to violate a consumer optimum might be attributed to the concept of bounded rationality, which recognizes that consumers do not always make optimal decisions as they face cognitive limitations and information constraints. This idea suggests that consumers often rely on heuristics or shortcuts when making choices, which may lead to suboptimal outcomes. Therefore, the apparent deviation from the consumer optimum could be explained by the notion of bounded rationality, which recognizes that consumers may not always behave as rational beings, leading to suboptimal choices.

Observations of Real-World Situations That Appear to Violate a Consumer