Critique of an Optimization Strategy
A fellow student argues: "To maximize personal satisfaction when choosing between two goods, one should simply find a point on the highest indifference curve possible. The budget limit is a secondary concern because the primary goal is to achieve the greatest utility, which is represented by the highest indifference curve."
Critically evaluate this statement. In your response, explain why this strategy is flawed and describe the correct graphical condition that identifies the optimal, affordable combination of goods.
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Introduction to Microeconomics Course
The Economy 2.0 Microeconomics @ CORE Econ
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Critique of an Optimization Strategy
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