In the context of optimization in microeconomics, individuals and firms seek to maximize their utility or profit by comparing ________ and ________ to ensure efficient resource allocation.

In microeconomics, individuals and firms aim to maximize their utility or profit by comparing costs and benefits. Costs refer to what they must give up, like money, time, or resources, while benefits are the gains they receive from their choices, such as satisfaction or revenue. For example, a student deciding whether to buy a new laptop will weigh the cost of the laptop against the benefits it provides, like improved study efficiency and better performance. By carefully analyzing these factors, they can make a choice that leads to the best possible outcome for their situation. This process helps ensure that resources are used in the most effective way.