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Profit and Utility Maximization

 
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Apr22-08, 12:24 PM   #1
 

Profit and Utility Maximization


In economics of the firm we are given a production function and a budget constraint and asked to maximize production using Lagrange. We use the same technique to maximize consumer utility. But how can we determine the objective function in the case of utility? I don't see the point of performing utility maximization if utility can never be measured.
 
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