What is utility?
Understand the Problem
The question asks for a definition of "utility," which is an economics term referring to the satisfaction or benefit derived from consuming a good or service.
Answer
Utility is the satisfaction or benefit a consumer receives from consuming a good or service.
Utility refers to the satisfaction or benefit a consumer receives from consuming a good or service. It measures how much value or usefulness a person finds in a product or service.
Answer for screen readers
Utility refers to the satisfaction or benefit a consumer receives from consuming a good or service. It measures how much value or usefulness a person finds in a product or service.
More Information
In economics, utility is used to understand consumer choices. While it can be subjective and difficult to measure, it's a fundamental concept for analyzing demand and consumer behavior.
Tips
A common mistake is to think of utility as an objective measure of usefulness, rather than a subjective measure of satisfaction. Utility varies from person to person.
Sources
- Utility in Economics Explained: Types and Measurement - investopedia.com
- What is Utility? Definition of Utility, Utility Meaning - m.economictimes.com
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