1.1.2 Economic assumptions

The underlying assumptions that:

• consumers aim to maximise their benefit
• businesses aim to maximise their profit.

Reasons why consumers may not maximise their benefit:

• consumers are not always good at calculating their benefits
• consumers have habits that are hard to give up
• consumers sometimes copy others’ behaviour.

Reasons why producers may not maximise their profit:

• producers may have managers that revenue maximise or sales maximise
• producers may prioritise caring for customers
• producers may complete charitable work.