Types of Rational Agents

In economics there are 3 types of rational agent and I will be discussing the 3 of them in this article:

Consumer:

A consumer is anyone who purchases a good or service for the utility. Their objective is to maximise their utility within the restraints of their net income. Utility can be different for anyone where someone may perceive a holiday as an example of utility while another may consider it as food.

Producers:

Producers are the firms manufacturing the goods and services. Their primary objective would be to maximise profits however they could be other things such as maximising revenue, gaining monopoly power or improving social/environmental welfare. These objectives may be made because it allows for them to reinvest their money, keep the firm afloat and also reward the employees and managers for their hard work.

Government:

Depending on the type of economy that the country is based around, the government can play varying amounts of influence on the markets. Their main aim is to improve the overall welfare for the country by reducing unemployment, reducing inflation, managing the money inflow and outflow from the country, and managing economic growth.