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.