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Utility of a good can be explained as a?
- a)Desire to consume
- b)Difference between what a consumer is willing to pay and actually pays
- c)Satisfaction that a consumer derives from the consumption of a particular good.
- d)Monetary value a consumer gains from consuming a particular good
Correct answer is option 'C'. Can you explain this answer?
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Utility of a good can be explained as a?a)Desire to consumeb)Differenc...
Utility represents satisfaction experienced by the consumer from a good.
Most Upvoted Answer
Utility of a good can be explained as a?a)Desire to consumeb)Differenc...
Explanation:
Utility of a good:
- Utility of a good refers to the satisfaction or pleasure that a consumer derives from consuming a particular good or service. It is the benefit or value that a consumer perceives in using a product or service.
Satisfaction from consumption:
- When a consumer consumes a good, they experience a certain level of satisfaction or utility from the consumption. This satisfaction can be in the form of meeting a need, fulfilling a desire, or simply enjoying the product.
Subjective nature of utility:
- Utility is subjective and varies from person to person. What one individual finds satisfying or valuable may not be the same for another person. It is based on personal preferences, tastes, and individual circumstances.
Importance of utility in consumer decision-making:
- Consumers make decisions about what to purchase based on the utility they expect to derive from a product. They are willing to pay a certain price for a good if they believe that the utility they will get from consuming it is worth the cost.
Maximizing utility:
- In economic theory, consumers are assumed to make rational decisions in order to maximize their utility. This means that they will allocate their resources (money) in a way that will bring them the greatest satisfaction or utility.
Conclusion:
- Utility is a key concept in understanding consumer behavior and decision-making. It plays a crucial role in determining the value of goods and services to individuals and influences their consumption choices.
Utility of a good:
- Utility of a good refers to the satisfaction or pleasure that a consumer derives from consuming a particular good or service. It is the benefit or value that a consumer perceives in using a product or service.
Satisfaction from consumption:
- When a consumer consumes a good, they experience a certain level of satisfaction or utility from the consumption. This satisfaction can be in the form of meeting a need, fulfilling a desire, or simply enjoying the product.
Subjective nature of utility:
- Utility is subjective and varies from person to person. What one individual finds satisfying or valuable may not be the same for another person. It is based on personal preferences, tastes, and individual circumstances.
Importance of utility in consumer decision-making:
- Consumers make decisions about what to purchase based on the utility they expect to derive from a product. They are willing to pay a certain price for a good if they believe that the utility they will get from consuming it is worth the cost.
Maximizing utility:
- In economic theory, consumers are assumed to make rational decisions in order to maximize their utility. This means that they will allocate their resources (money) in a way that will bring them the greatest satisfaction or utility.
Conclusion:
- Utility is a key concept in understanding consumer behavior and decision-making. It plays a crucial role in determining the value of goods and services to individuals and influences their consumption choices.
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Utility of a good can be explained as a?a)Desire to consumeb)Difference between what a consumer is willing to pay and actually paysc)Satisfaction that a consumer derives from the consumption of a particular good.d)Monetary value a consumer gains from consuming a particular goodCorrect answer is option 'C'. Can you explain this answer?
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Utility of a good can be explained as a?a)Desire to consumeb)Difference between what a consumer is willing to pay and actually paysc)Satisfaction that a consumer derives from the consumption of a particular good.d)Monetary value a consumer gains from consuming a particular goodCorrect answer is option 'C'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Utility of a good can be explained as a?a)Desire to consumeb)Difference between what a consumer is willing to pay and actually paysc)Satisfaction that a consumer derives from the consumption of a particular good.d)Monetary value a consumer gains from consuming a particular goodCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Utility of a good can be explained as a?a)Desire to consumeb)Difference between what a consumer is willing to pay and actually paysc)Satisfaction that a consumer derives from the consumption of a particular good.d)Monetary value a consumer gains from consuming a particular goodCorrect answer is option 'C'. Can you explain this answer?.
Utility of a good can be explained as a?a)Desire to consumeb)Difference between what a consumer is willing to pay and actually paysc)Satisfaction that a consumer derives from the consumption of a particular good.d)Monetary value a consumer gains from consuming a particular goodCorrect answer is option 'C'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Utility of a good can be explained as a?a)Desire to consumeb)Difference between what a consumer is willing to pay and actually paysc)Satisfaction that a consumer derives from the consumption of a particular good.d)Monetary value a consumer gains from consuming a particular goodCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Utility of a good can be explained as a?a)Desire to consumeb)Difference between what a consumer is willing to pay and actually paysc)Satisfaction that a consumer derives from the consumption of a particular good.d)Monetary value a consumer gains from consuming a particular goodCorrect answer is option 'C'. Can you explain this answer?.
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Utility of a good can be explained as a?a)Desire to consumeb)Difference between what a consumer is willing to pay and actually paysc)Satisfaction that a consumer derives from the consumption of a particular good.d)Monetary value a consumer gains from consuming a particular goodCorrect answer is option 'C'. Can you explain this answer?, a detailed solution for Utility of a good can be explained as a?a)Desire to consumeb)Difference between what a consumer is willing to pay and actually paysc)Satisfaction that a consumer derives from the consumption of a particular good.d)Monetary value a consumer gains from consuming a particular goodCorrect answer is option 'C'. Can you explain this answer? has been provided alongside types of Utility of a good can be explained as a?a)Desire to consumeb)Difference between what a consumer is willing to pay and actually paysc)Satisfaction that a consumer derives from the consumption of a particular good.d)Monetary value a consumer gains from consuming a particular goodCorrect answer is option 'C'. Can you explain this answer? theory, EduRev gives you an
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