Here is the synopsis of our sample research paper on Explaining Utility Maximization with the Use of Indifference Curves. Have the paper e-mailed to you 24/7/365.
Essay / Research Paper Abstract
This 10 page paper explains the way in which consumer utility maximization takes place. The paper considers the way in which utility can be measured at different budget levels with reference to total utility and marginal utility. The use of indifference curves is explained and utility maximization is demonstrated with reference to budget and indifference curves. The paper ends by considering why a consumer may be disadvantaged in utility terms if the price of one good increases. The paper includes several graphs to illustrate the points raised. The bibliography cites 12 sources.
Page Count:
10 pages (~225 words per page)
File: TS14_TEutmaxim.rtf
Buy This Term Paper »
Unformatted sample text from the term paper:
income is spent depends on a large number of factors which combine factors such as needs, desires and potential satisfaction that can be gained from a purchase. While many needs
may be similar among consumer groups, the way in which those needs may be satisfied and perception given to the way in which are satisfied will vary. This reason, it
can be difficult to try and ascertain or project the way in which a consumer will spend their money (Nellis and Parker, 2000). One approach to determine the way consumers
will seek to maximize the return they get to their income is through economics. In economic terms the amount a consumer has to spend is referred to as utility (Nellis
and Parker, 1996). Determining the way in which utility may be maximized can be undertaken with the use of indifference curves. To demonstrate the maximization of utility it is important
that utility and indifference curves are understood. In simple terms the value placed on any good or service will vary dependent upon the person buying it. Theoretically, the value
of any good should reflect the number of input labor hours required for its production which will imply there is a fundamental link between the value of labor input and
price of a good (Marx, 1999). The problem with this approach is the way in which it as sales to predict the values which are seen in markets in real
life. It was as a result of this failure that the idea of utility has been developed. This is a term utilized as a way of describing a "sense"
of value. Bentham defines utility as "that property in any object, whereby it tends to produce benefit, advantage, pleasure, good, or happiness" (Bentham, 1987). Therefore, the way in which something
...