ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Total utility is the aggregate satisfaction that an individual receives from consuming a specific quantity of a good or service.

Detailed explanation-2: -Utility Definition – It is a measure of satisfaction an individual gets from the consumption of the commodities. In other words, it is a measurement of usefulness that a consumer obtains from any good. A utility is a measure of how much one enjoys a movie, favourite food, or other goods.

Detailed explanation-3: -Economic utility can be defined as the total amount of satisfaction that someone experiences when they consume a particular product or service. It helps measure how much fulfillment someone requires in order to satisfy a particular need or want.

Detailed explanation-4: -Utility is measured in units called utils-the Spanish word for useful-but calculating the benefit or satisfaction that consumers receive is abstract and difficult to pinpoint. As a result, economists measure utility in terms of revealed preferences by observing consumers’ choices.

Detailed explanation-5: -Individuals are the only judge of their own utility. In general, greater consumption of a good brings higher total utility. However, the additional utility received from each unit of greater consumption tends to decline in a pattern of diminishing marginal utility.