Rational decisions
- Created by: ann2000
- Created on: 24-02-18 13:33
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In economics assume that consumers and businesses will act rationally
CONSUMERS-- act rationally by maximising utility
BUSINESSES- making decisions that maximise profit
Analysing decisons by using Cetris peribus --- assuming all things being equal
WHY DONT THE ACT RATIONALLY
1) Herd mentality
-- meaning following the…
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