Theory Consumer and business behaviour and the evolution of a market.

[LesscoBlob]

One of my favourite topics is consumer behaviour. The Rational consumer wishes to maximise an item's utility to get the most for themselves at the lowest price. Meanwhile, the rational behaviour of businesses is to maximise profits with the lowest possible costs. When looking at the way the Equilibrium price is developed, it's interesting to note just how differently the market evolves contrary to both the consumer and business's predictions.
(This was made for @Khanivore )

 

[LesscoBlob]

Bump

 

[Khanivore]

Hey, it is not that sophisticated, i can understand it easily... i thought you would smash me with some really strong stuff! Get me more, madame!

 

[Khanivore]

and i will reply in a thoughtful way, just wait - ima occupied at the momentari

 

[BigSadnes765]

The most effective way to boost economy is replace weak SEA monkeys with good old strong and hard working nigger slaves

 

[Khanivore]

The most effective way to boost economy is replace weak SEA monkeys with good old strong and hard working nigger slaves

and you got that responses... yeah...

 

[Kafka2020]

One of my favourite topics is consumer behaviour. The Rational consumer wishes to maximise an item's utility to get the most for themselves at the lowest price. Meanwhile, the rational behaviour of businesses is to maximise profits with the lowest possible costs. When looking at the way the Equilibrium price is developed, it's interesting to note just how differently the market evolves contrary to both the consumer and business's predictions.
(This was made for @Khanivore )

Unless consumers aren't rational

 

[wereq]

Hey, it is not that sophisticated

Imagine being as low IQ as you and asking for sophistication and complexity!

 

[LesscoBlob]

Unless consumers aren't rational

Correct, which is why so many consumer items are getting more expensive.

 

[LesscoBlob]

and i will reply in a thoughtful way, just wait - ima occupied at the momentari

Yeah, no problem.

 

[PLA1092]

brutal

 

[Kafka2020]

Correct, which is why so many consumer items are getting more expensive.

Normies lack the capacity to even consider the future consequences of their current actions.

Turns out, supply and demand are like gravity and when you fuck with gravity, you die.

 

[based_meme]

>Consumer
>Rational

There's your problem. The breadth of economic theory rests on the presupposition that human agents are rational actors. Human are rarely rational in a vacuum, let alone in complex systems.

 

[Khanivore]

Okay, okay, im severely late... sorry, mister! I will try to make my answerino worthy of your timeino!

The Rational consumer wishes to maximise an item's utility to get the most for themselves at the lowest price.

Correct, to maximise it you must at least learn basics of item, that you wish to buy. Compare it with other items in your vicinity, compare it with more pricey and less pricey items, not that hard. At least, it is easy for PC hardware market) you can get numerous articles about parts.. although - they can be not quite valid, be on paycheck of somebody. Consumer must be on his guard, and dont buy random stuff because it looks good
Admittedly - i do not possess the knowledge to say, how much people are actually comparing (at least by basics) their wanted item with other items. I compare, but i cant say it about others - i just dont know

Although market for high-end computer parts is small.. you know that high-end hardware is manufactured just for keeping image of company afloat? high end sales make 1-5% of total sales. I fugure, you know why this exist

Meanwhile, the rational behaviour of businesses is to maximise profits with the lowest possible costs.

Yeah, it is almost the basic economy point - if a trader wants to get rich, he must find a way to get his stuff on a lesser cost, and resell it at bigger cost. Margin is your profit! Companies can do very and very heavy gymnastics in order to reduce their losses - and they will, because the profit of any commercial business is to make money any possible way... Hello, 1933-1945 german and japanese corps)

When looking at the way the Equilibrium price is developed, it's interesting to note just how differently the market evolves contrary to both the consumer and business's predictions.

What is Equilibrium? Yes, market laws is something to behold... we are mere atoms for corps like Intel or AMD. Oh well, what can we do - we can do nothing here

 

[Khanivore]

>Consumer
>Rational

There's your problem. The breadth of economic theory rests on the presupposition that human agents are rational actors. Human are rarely rational in a vacuum, let alone in complex systems.

Well, at least some customers will be rational.. although - perhaps, majority of them arent

 

[timmy]

One of my favourite topics is consumer behaviour. The Rational consumer wishes to maximise an item's utility to get the most for themselves at the lowest price. Meanwhile, the rational behaviour of businesses is to maximise profits with the lowest possible costs. When looking at the way the Equilibrium price is developed, it's interesting to note just how differently the market evolves contrary to both the consumer and business's predictions.
(This was made for @Khanivore

 

[LesscoBlob]

I love The Office. One the greatest shows ever

 

[decembrist_kirillov]

cope

 

[LesscoBlob]

cope

Grope or rope.