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    Be 313 - Week 4-5 - Unit Learning A - Part 1

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    mhel cabigon
    This document provides an overview of key concepts in consumer behavior and utility maximization. It discusses how consumers differ in their needs, preferences, and standards. The goal of consumers from an economic standpoint is to maximize satisfaction given their budget. The document defines key terms like consumer, goods and services, and the different types of goods. It explains that consumers demand goods and services, and their role in determining production through consumer sovereignty.

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    Be 313 - Week 4-5 - Unit Learning A - Part 1

    Uploaded by

    mhel cabigon
    24 views7 pages
    This document provides an overview of key concepts in consumer behavior and utility maximization. It discusses how consumers differ in their needs, preferences, and standards. The goal of consumers from an economic standpoint is to maximize satisfaction given their budget. The document defines key terms like consumer, goods and services, and the different types of goods. It explains that consumers demand goods and services, and their role in determining production through consumer sovereignty.

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    Be 313 - Week 4-5 -Unit Learning a - Part 1

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    This document provides an overview of key concepts in consumer behavior and utility maximization. It discusses how consumers differ in their needs, preferences, and standards. The goal of consumers from an economic standpoint is to maximize satisfaction given their budget. The document defines key terms like consumer, goods and services, and the different types of goods. It explains that consumers demand goods and services, and their role in determining production through consumer sovereignty.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    24 views7 pages

    Be 313 - Week 4-5 - Unit Learning A - Part 1

    Uploaded by

    mhel cabigon
    This document provides an overview of key concepts in consumer behavior and utility maximization. It discusses how consumers differ in their needs, preferences, and standards. The goal of consumers from an economic standpoint is to maximize satisfaction given their budget. The document defines key terms like consumer, goods and services, and the different types of goods. It explains that consumers demand goods and services, and their role in determining production through consumer sovereignty.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 7

    BE 313

    MANAGERIAL ECONOMICS

    Prepared by: PEARL LETTEE D. MAUNES, MBA


    Google chat/email address: [email protected]
    WEEK 4-5
    Big Picture in Focus:
    Unit Learning A
    Rationalize consumer behavior and utility
    maximization.
    Essential Knowledge

    Consumers have different needs and demands. We differ in styles,


    preferences, standards, among others. Consumer behavior is hard to
    measure; however, from an economic standpoint, our goal as
    consumers, is to maximize our satisfaction given our budget or income.
    In this unit, we will discuss how we behave, as consumers, to maximize
    our satisfaction on the goods and services that we consume.
    Essential Knowledge
    Consumer
    A consumer is one who demands goods and services. Without
    consumers, there is no need for production.

    Consumer sovereignty refers to the consumers’ power to determine


    ‘what to produce’ since we are the ultimate buyers of goods and services.
    Essential Knowledge
    Goods and Services
    A consumer is one who demands goods and services. Without
    consumers, there is no need for production.

    Goods refer to tangible items that provide satisfaction to the


    needs and wants of consumers, such as clothes, cars, books, etc.
    Services refer to intangible activities such as banking, catering,
    hairdressing, etc. that likewise gives satisfaction to human wants.
    Essential Knowledge
    Essential goods. These are the goods that are necessary for our
    daily existence. In other words, these are the goods that humans cannot
    live without such, as food, water, clothing, medicine, etc.
    Luxury goods. These are the goods that humans can live without
    but contribute to comfort and well-being, such as yacht, perfumes,
    jewelry, etc.
    Economic goods. These are goods that are both useful and
    scarce. It has a value attached to it, and a price has to be paid for its use.
    An example of this would be water from our faucet because we are not
    utilizing it for free.
    Essential Knowledge
    Free goods. These are the goods that are so abundant everyone
    is using it for free. Examples of these goods would be the sunlight and the
    air that we breathe.
    Intermediate goods. These are the goods used for further
    production, such as tires for car production or buttons to create dresses.
    Final goods. These are the goods that directly satisfy human
    wants and needs. For example, a microwave oven or bicycle are final
    goods. They directly contribute to the satisfaction of consumers rather
    than being used for further production.

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