What is the term for a decision that maximizes overall benefit?

The term that describes a decision aimed at maximizing overall benefit is "Optimization." In economic contexts, optimization refers to the process of making the most efficient use of resources to achieve the best possible outcome. This can include maximizing profit, utility, or societal welfare, depending on the scenario being analyzed.

When individuals, firms, or governments make choices, they often evaluate various options and select the one that provides the highest benefit relative to costs. This aligns with the core principle of optimization, which seeks to attain the best-possible result given constraints and available resources.

In contrast to optimization, other terms like scarcity refer to the limited nature of resources, while opportunity cost signifies the value of the next best alternative that must be forgone when making a decision. Welfare maximization is closely related but specifically focuses on enhancing overall social welfare, which is part of the broader optimization concept. Hence, optimization encompasses a wide array of decisions aimed at maximizing benefits across various contexts.