TAILIEUCHUNG - Lecture Managerial economics (Ninth edition): Chapter 5 – Thomas, Maurice

Chapter 5 - Theory of consumer behavior. In this chapter, you learned to: Explain the concept of utility and the basic assumptions underlying consumer preferences; explain the equilibrium condition for an individual consumer to be maximizing utility subject to a budget constraint; use indifference curves to derive a demand curve for an individual consumer;. | Chapter 5 Theory of Consumer Behavior The Consumer’s Optimization Problem Individual consumption decisions are made with the goal of maximizing total satisfaction from consuming various goods and services Subject to the constraint that spending on goods exactly equals the individual’s money income 5- Consumer Theory Assumes buyers are completely informed about: Range of products available Prices of all products Capacity of products to satisfy Their income Requires that consumers can rank all consumption bundles based on the level of satisfaction they would receive from consuming the various bundles 5- Typical Consumption Bundles for Two Goods, X & Y (Figure ) 5- Properties of Consumer Preferences Completeness For every pair of consumption bundles, A and B, the consumer can say one of the following: A is preferred to B B is preferred to A The consumer is indifferent between A and B Transitivity If A is preferred to B, and B is preferred to C, then A must be preferred to

• Kinh tế học
• Managerial economics
• Lecture Managerial economics
• Microeconomic theory
• Economic theory
• Consumer behavior
• Consumer theory
• Market interactions
• Fundamentals of managerial economics
• Marginal analysis
• Marginal benefit
• Economic principles
• Kinh tế học quản lý
• Price discrimination
• Monopolistic competition
• Oligopoly games
• Traditional oligopoly models
• Capital market
• Labour market
• Economic equations
• Economic applications
• Economic applications of derivatives
• Economic application
• Multi variable functions
• Constrained optimization
• Scatter diagram
• Forms of money
• Monetary policy
• Perfect competition
• Demand function
• Supply function
• Quantitative demand analysis
• Theory of individual behavior
• Demand estimation
• Production function
• Costs of production
• Organizing production