Figure 1- 2With a budget of $500 000,a school board can choose to purchase 20 000 textbooks or 2000 laptop computers (or some intermediate combination)for use in classrooms.

-Economists usually assume that households and firms,respectively,maximize

Question

Figure 1- 2With a budget of $500 000,a school board can choose to purchase 20 000 textbooks or 2000 laptop computers (or some intermediate combination)for use in classrooms.
 
-Economists usually assume that households and firms,respectively,maximize

Quizplus · Accepted Answer

Economists typically assume that households aim to maximize utility, which refers to the satisfaction or benefit derived from consuming goods and services, while firms aim to maximize profits, which is the difference between total revenue and total costs.

Figure 1- 2With a Budget of $500 000,a School Board