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what are the conventional assumptions made by economists in relation to consumer preferences?

2006-12-27 12:25:01 · 1 answers · asked by define 2 in Social Science ➔ Economics

wat are the shortcomings of such assumptions?

2006-12-28 07:37:08 · update #1

1 answers

more is better than less
diminishing returns on consumption
Most economist also assume concave indifference curves and that consumers can maximize utility subject to the constraint of income. However there are some economists that object to this formulation.

2006-12-28 05:26:56 · answer #1 · answered by meg 7 · 0⤊ 0⤋