Asked by amirhossein jafarikermanshahi on May 23, 2024
Verified
Utility is the:
A) difference between a firm's total revenue and its total economic cost.
B) good not adequately provided by a free market and usually provided by the government.
C) satisfaction consumers derive from their consumption of goods and services.
D) lowest price that buyers are willing to pay for a given quantity of a good.
Utility
A measure of satisfaction or pleasure that consumers derive from consuming goods or services.
Consumption
The act of using goods and services to satisfy needs and wants, a key concept in economics relating to how goods and services are used.
Satisfaction
The degree of contentment or pleasure experienced from the fulfillment of a desire or the consumption of goods and services.
- Familiarize oneself with the notion of utility as the satisfaction achieved through the consumption of goods and services.
- Interpret the relationship between utility, consumption, and consumer satisfaction.
Verified Answer
TL
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Final Answer :
C
Explanation :
Utility refers to the satisfaction or usefulness an individual derives from consuming a good or service. It is a subjective measure and varies from person to person.
Learning Objectives
- Familiarize oneself with the notion of utility as the satisfaction achieved through the consumption of goods and services.
- Interpret the relationship between utility, consumption, and consumer satisfaction.