The concept of utility maximization:
A) is solely used to measure an individual's satisfaction with his consumption choices.
B) can be used broadly to think about choices made motivated by satisfaction, envy, status, or kindness.
C) assumes each individual seeks to increase his own personal satisfaction regardless of others.
D) None of these is true.

Question

Quizplus · Accepted Answer

Utility maximization can be used broadly to think about choices made motivated by satisfaction, envy, status, or kindness. It does not solely focus on an individual's satisfaction with consumption choices and it does not assume that individuals only seek to increase their own personal satisfaction.

The Concept of Utility Maximization