Answered: Define utility function.

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter7: Consumer Choice: Maximizing Utility And Behavioral Economics

Section7.1: Utility Theory

Problem 3ST

See similar textbooks

Related questions

Question

Define utility function.

Expert Solution

Step 1

Utility describes a condition for a consumer which shows that how a consumer attains a utility or satisfaction while consuming a product with his respective income. The concept of utility is measured in terms of utils.

Step 2

Utility function describes a concept in which the preferences are measured of goods and services consumed by the consumer. This concept is completely derived from the concept of satisfaction or usefulness of a product.

Step by step

Solved in 3 steps

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions