Utility Analysis Quiz

Utility analysis is a method used to assess the value or worth of something by measuring the satisfaction or usefulness it provides.

The purpose of utility analysis is to determine the benefits or costs associated with a particular decision or action.

Utility analysis is used in decision-making to compare and evaluate different options based on their expected outcomes and the level of satisfaction they can provide.

<p>Marginal utility describes the change in utility of one unit of a good or service.</p> Signup and view all the answers

<p>Marginal utility can be positive, negative, or zero.</p> Signup and view all the answers

<p>When eating pizza, the second piece may bring more satisfaction than the first.</p> Signup and view all the answers

<p>Negative marginal utility implies that every additional unit consumed causes more harm than good, leading to a decrease in overall utility.</p> Signup and view all the answers

<p>Positive marginal utility indicates that every additional unit consumed increases overall utility.</p> Signup and view all the answers