Utility maximization is a strategic scheme whereby individuals and companies seek to achieve the highest level of satisfaction from their economic decisions.

Utility maximization is an important concept in consumer theory as it shows how consumers decide to allocate their income. Because consumers are rational, they ...

Theory tells us that consumers should purchase any good until the ratio of its marginal utility to price is the same as that ratio for all other goods.

Section 01: Consumer Behavior. Utility. In this section, we are going to take a closer look at what is behind the demand curve and the behavior of consumers ...

Duration: 7:42
Posted: Oct 1, 2015

Utility maximisation refers to the concept that individuals and firms seek to get the highest satisfaction from their economic decisions.

Duration: 11:02
Posted: Mar 6, 2020

If a consumer wants to maximize total utility, for every dollar that they spend, they should spend it on the item which yields the greatest marginal utility per ...

The concept of utility maximization is key in consumer theory because it helps economic experts understand how market participants allocate their resources.