The simple rule for utility maximization is:
Purchase units for which marginal utility is at least as great as Price. Do not purchase units for which marginal utility is less than Price.
The above results are the result of marginal analysis. This sort of analysis is at the heart of all microeconomic analysis and decision making. We will see that optimization in the form of utility maximization, profit maximization, cost minimization, and any other optimizing problem we encounter in microeconomics is solved by comparing marginal benefits to marginal costs. Comparing total costs and total benefits has it's place, but most microeconomic analysis is based on marginal comparisons.
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