Assumption of the theory of consumer behavior

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1. Which of the following is not an assumption of the theory of consumer behavior described in this chapter?

A. The consumer has make decisions within a given budget constraint

B. The consumer experiences diminishing marginal utility from consuming goods

C. The consumer's tastes and preferences continually change within the period studied

D. The consumer aims to get maximum total utility out of a given budget

2. In deciding what to buy, the consumer will choose the good with the:

A. Highest marginal utility

B. Lowest price

C. Highest marginal utility-to-price ratio

D. Lowest marginal utility-to-price ratio

Reference no: EM13854695

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