Which of the following is the best example of a consumer's objective function?
A)profits
B)consumption
C)satisfaction
D)budget constraint

Question

Quizplus · Accepted Answer

A consumer's objective function aims to maximize their utility or satisfaction, making choice C the best example. While profits may be an objective function for a producer, consumption and budget constraint are not specific to consumers. A consumer's objective function is what they are trying to maximize, and in this case, it is a consumer's satisfaction or utility. Profits are the objective function for firms, not consumers. Consumption and budget constraint are factors that influence the objective function but are not the objective function itself.

Which of the Following Is the Best Example of a Consumer's