A theory used in economics that holds the belief that when individuals purchase a good or a service, they strive to obtain the most amount of value possible, while at the same time spending the least amount of money possible. When combined, the consumer is attempting to derive the greatest amount of value from their available funds.
Related information about utility maximization:
- Utility maximization problem - Wikipedia, the free encyclopedia
In microeconomics, the utility maximization problem is the problem consumers face: "how should I spend my money in order to maximize my utility?" It is a type of ...
- Micro 2.11 Utility Maximization: Econ Concepts in 60 Seconds ...
Sep 24, 2009 ... Mr. Clifford's 60 second explanation of utility maximization including how to calculate utility per dollar. Please keep in mind that these clips are ...
- What is utility maximization? definition and meaning
Definition of utility maximization: Economics concept that, when making a purchase decision, a consumer attempts to get the greatest value possible from ...
- Utility Maximization Given the consumer's income, M, and prices, p x ...
Utility Maximization. Given the consumer's income, M, and prices, px and py, the consumer's problem is to choose the affordable bundle that maximizes her utility ...
- A Utility Maximization Example - Charlie Gibbons - University of ...
Since we couldn't finish the utility maximization problem in section, here it is solved from the beginning. 1 The ingredients. First, we start with a budget constraint: ...
- Consumer Choice and Utility Maximization
This category introduces the utility maximization framework and shows how consumers' demand is derived.
- Utility maximization - The Free Dictionary
u·til·i·ty (y -t l -t ). n. pl. u·til·i·ties. 1. The quality or condition of being useful; usefulness: "I have always doubted the utility of these conferences on disarmament" ...
- Utility maximization - AmosWEB
The process or goal of obtaining the highest level of utility from the consumption of goods or services. The goal of maximizing utility is a key assumption ...