Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Choosing products that provide the highest satisfaction for a given budget
B
Reducing costs of production
C
Increasing market share
D
Balancing supply and demand
Understanding the Answer
Let's break down why this is correct
Answer
Consumer utility maximization is about how people make choices to get the most satisfaction or happiness from the goods and services they buy. This concept suggests that consumers will try to spend their money in a way that gives them the highest possible level of enjoyment, given their budget. For example, if someone has $10 to spend, they might choose to buy two pizzas instead of one pizza and a soda because they believe the two pizzas will give them more satisfaction. Consumers consider the price of items and how much they value each item to decide what to buy. In this way, utility maximization helps explain why people make certain purchasing decisions based on their preferences and limitations.
Detailed Explanation
This idea is about picking things that make you the happiest with your money. Other options are incorrect because Some might think it's about cutting costs for making products; People might believe it's about a company getting bigger.
Key Concepts
utility
Topic
Consumer Utility Maximization
Difficulty
easy level question
Cognitive Level
understand
Ready to Master More Topics?
Join thousands of students using Seekh's interactive learning platform to excel in their studies with personalized practice and detailed explanations.