How do consumers use cost-benefit analysis? why do consumers make different decisions using this process?

Consumers use cost-benefit analysis whenever they need to make a decision. Cost-benefit analysis occurs when you study a decision by analyzing the costs that this will represent (money, time, opportunity, etc.) and contrasting it to the benefits it might bring you. By doing this analysis, a consumer can better decide whether the action is worth taking.

Even though the process might be the same, consumers can still make different choices. This is because not everyone appreciates and values the same things in life. Moreover, some people might be more risk averse, and they might require a lot of benefits in exchange for any risk.

"choosing is refusing" means individuals face an opportunity cost with each decision they make. economists state that every decision involves trade-offs. opportunity cost is the least desirable alternative given up as a result of a decision.