Maximization (economics)

Maximization is an economics theory, that refers to individuals or societies gaining the maximum amount out of the resources they have available to them.Fact|date=November 2007 The theory proposed by most economists is that maximization refers to the maximization of profit.Fact|date=November 2007

As some economists have begun to find out,Fact|date=November 2007 this theory does not hold true for all people and cultures. The profit motive is not universal, and the profit motive does not seem to be applicable in all cases. People maximize in a variety of things including profit, wealth, prestige, pleasure, comfort, and social harmony.

In today's culture, one might see many cases which explain maximization in a sense outside of profit. Occasionally, teachers may be teaching instead of working at a different, higher paying job. Another example may be a person trying to maximize personal comfort in which the person avoids a job and stays on welfare. This, certainly, is not maximizing monetary profit, but may be explained by economic theories about maximization of utility.

References

*Kottak, Conrad Phillip. Windows on Humanity. New York: McGraw-Hill, 2005.