Difference between revisions of "Utility"
Jump to navigation
Jump to search
MountainDew (talk | contribs) m (Reverted edits by Conservator (Talk); changed back to last version by N) |
|||
| Line 1: | Line 1: | ||
Utility is an economic term representing the someone's satisfaction or happiness. The utility of a [[good]], for example, is its ability to bring satisfaction to the buyer. | Utility is an economic term representing the someone's satisfaction or happiness. The utility of a [[good]], for example, is its ability to bring satisfaction to the buyer. | ||
| + | |||
| + | Utility functions are mathematical ways of representing the benefits accruing to a consumer from his consumption of various goods. A utility function, in conjunction with a budget constraint, may be used to determine a consumer's optimal bundle of goods. | ||
[[Category:Economics]] | [[Category:Economics]] | ||
[[Category:Philosophy]] | [[Category:Philosophy]] | ||
Revision as of 04:16, March 29, 2007
Utility is an economic term representing the someone's satisfaction or happiness. The utility of a good, for example, is its ability to bring satisfaction to the buyer.
Utility functions are mathematical ways of representing the benefits accruing to a consumer from his consumption of various goods. A utility function, in conjunction with a budget constraint, may be used to determine a consumer's optimal bundle of goods.