Chapter 16, Problem 1QFR

To determine

To explain:

If an individual and his/her friend both watch a movie and like it, whether it is justifiable to say that they both receive same amount of utility.

Explanation of Solution

Even though both individuals liked the movie, this does not mean that both get the same utility levels. The concept of utility differs from person to person. This is because utility depends on the experience or benefit that a person derives from the consumption of goods and services, and these benefits or experiences differs from person to person. Therefore, even though both liked the movie very much,it cannot be said that both the persons are receiving same amount of utility.

Economics Concept Introduction

Utility:

It is the level of satisfaction that an individual gets after consuming goods and services. The level of utility varies from consumer to consumer and the quantity of commodities and services.