The fundamental optimization problem that economic agents face
12 statements · 33% with external sources · numbers in brackets are citations
6 identifiers linking utility maximization problem across the web's reference databases
From Wikipedia, the free encyclopedia · Read full article · Text CC BY-SA 4.0
In microeconomic theory, the utility maximization problem formalizes how a consumer allocates limited resources across different goods and services. The consumer is assumed to have well-defined preferences over all feasible bundles of goods and to be able to rank these bundles according to the level of utility they provide. Given a budget constraint determined by income and prices, the consumer chooses the most preferred bundle that is affordable. The utility maximization problem yields a systematic analysis of consumer demand and how it changes in response to changes in income or prices.