What is Utility Maximization Problem
Jeremy Bentham and John Stuart Mill, both utilitarian philosophers, were the ones who initially devised the concept of utility maximization. The utility maximization problem is a challenge that consumers encounter in the field of microeconomics. This problem pertains to the question, “How should I spend my money in order to maximize my utility?” It falls within the category of optimal choice problems. It is the process of deciding how much of each available commodity or service to consume, taking into account a limitation on overall spending (income), the cost of the goods, and the preferences of the individual.
How you will benefit
(I) Insights, and validations about the following topics:
Chapter 1: Utility maximization problem
Chapter 2: Utility
Chapter 3: Indifference curve
Chapter 4: Consumer choice
Chapter 5: Budget constraint
Chapter 6: Income-consumption curve
Chapter 7: Marshallian demand function
Chapter 8: Arrow-Debreu model
Chapter 9: Fundamental theorems of welfare economics
Chapter 10: Revealed preference
Chapter 11: Indirect utility function
Chapter 12: Hicksian demand function
Chapter 13: Corner solution
Chapter 14: Local nonsatiation
Chapter 15: Sonnenschein-Mantel-Debreu theorem
Chapter 16: Competitive equilibrium
Chapter 17: Quasilinear utility
Chapter 18: Preference (economics)
Chapter 19: Fair item allocation
Chapter 20: Dixit-Stiglitz model
Chapter 21: Abstract economy
(II) Answering the public top questions about utility maximization problem.
(III) Real world examples for the usage of utility maximization problem in many fields.
Who this book is for
Professionals, undergraduate and graduate students, enthusiasts, hobbyists, and those who want to go beyond basic knowledge or information for any kind of Utility Maximization Problem.
