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concept of utility maximization

Your bank is developing a marketing campaign to appeal to new customers. In a meeting, your manager asked the following question: "Do individuals have any other economic responsibility rather than to maximize their own utility?" How would you respond to this question? How might the bank tie in the concept of utility maximization into the campaign?

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Utility is often misunderstood outside of economics. There is a belief that it implies selfish behaviour or that somehow it equates to private gain, particularly monetary gain. Utility is any benefit that an individual gains from her or another agent's decision. This can include such a diverse things as buying an apple, contributing to a charity, having children, etc. So to talk about ...

Solution Summary

The concept of utility maximization is presented.