Sunday, September 13, 2015
Christen Majors, Chapter 1, Question 6
Through chapter one I was brought to a better understanding of maximizing "utility" which is a broader form of happiness. Utility is not something that makes you particularly happy, it is something that makes you better off. Wheelan mentions that it is not always the case where "maximizing utility" is "synonymous with acting selfishly." He provides examples of how one acts to maximize their utility with what we have. I open the door or choose a job because it will bring me the most utility (and that does not necessarily mean money or material gifts.) Wheelan brings a conclusion to an age-old question "why did the chicken cross the road? Because it maximized his utility." While individuals as consumers strive to maximize their utility, Firms or businesses strive to maximize their profit in hopes that consumers will choose their products. In South Africa, where the gas prices are fixed, Wheelan saw that the service was extremely friendly and dressed up. He realized that this was impart the only way that could make business through the service they provided not through the low prices the provided. The firms seek to maximize their profit through what they see will maximize the consumers utility.
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