Answered: Describe the Utility Company Approach?

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Economics

Describe the Utility Company Approach?

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter20: Consumer Choice: Maximizing Utility And Behavioral Economics

Section: Chapter Questions

Problem 2QP

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Question

Describe the Utility Company Approach?

Expert Solution

Step 1

Utility means the usefulness or value from a product that is experienced by consumers. The economic utilities are helpful in assessing decisions regarding the consumer purchase and pinpoint the drivers behind those decisions. Companies aim to increase the utility of their goods and services to enhance the satisfaction of customer, increase sales, and drive earnings. It is designed in a way to assist companies in operating a business and marketing the company such that it is likely to attract the maximum amount of customers and sales revenues.

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