Utility Maximization Analysis of an Organization: A Mathematical Economic Procedure

Devajit Mohajan and Haradhan Mohajan
Authors registered in the RePEc Author Service: Dr Haradhan Kumar Mohajan ()

MPRA Paper from University Library of Munich, Germany

Abstract: In the society utility is the vital concept, especially in mathematical economics. It is considered as the tendency of an object or action that increases or decreases overall happiness. In social sciences, the property of a commodity that enables to satisfy human wants is called utility. This paper has tried to operate utility maximization policy of an organization by considering two constraints: budget constraint and coupon constraint. To develop the maximization policy of utility function, the techniques of multivariate calculus are used. In this study four commodity variables are used to operate the mathematical analysis efficiently. In this article Lagrange multiplier technique is applied to achieve optimal result throughout the study.

Keywords: Commodities; Lagrange multipliers; utility maximization; budget and coupon constraints (search for similar items in EconPapers)
JEL-codes: C3 C51 C52 C53 C61 C67 I31 O1 (search for similar items in EconPapers)
Date: 2022-10-10, Revised 2022-10-15
New Economics Papers: this item is included in nep-upt
References: View references in EconPapers View complete reference list from CitEc
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Published in Law and Economy 1.3(2022): pp. 1-15

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