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3 paragraph discussion post

Date Posted: 13/06/2019
Category: Business
Due Date: 13/06/2019
Instruction
The theory on consumer choice and utility maximization (chapter 7) was developed nearly 100 years ago and is actually very good. According to chapter 7 when you go into the grocery store and you are confronted with nearly 1000 different products your mind (consciously or unconsciously) calculates the marginal utility of a product divided by the price of the product and you compare that figure to all the other products in the store. You then put into you shopping cart those products that yield the greatest marginal utility per dollar than the other products, given that you have the budget for it. So, this assumes that consumers are 'cool, calculating' machines. But is this really true. Do we make our decisions inside the grocery store this way. In two or three paragraphs state if this model of consumer decision making is correct or maybe not. If not, then what else is causing us to make our purchasing decisions in the grocery store. There is no right or wrong answer. The book is Economics, 21 ed., with CONNECT PLUS, McGraw Hill. Authors are McConnell, Campbell R., Stanley L. Brue, and Dean M. Flynn. The ISBN numbers for the textbook with Connect are (13 digit) 9781259915574 or (10 digit) 1259915573.
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