ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Utility, in economics, refers to the usefulness or enjoyment a consumer can get from a service or good. Although the concept of utility is abstract, it is a useful way to explain how and why consumers make their decisions. “Ordinal” utility refers to the concept of one good being more useful or desirable than another.

Detailed explanation-2: -The utility is what makes an object or substance a resource. The factors that determine the utility of any natural resources foremost are ‘human beings’ because only they have the ability to recognise any substances as resources, Utility simply means the ability to satisfy a want.

Detailed explanation-3: -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-4: -Utility refers to the comprehensive benefits obtained from consuming an item or service. This sums up the utility definition. Consumers would typically aim to maximise their utility based on rational choice based on economic models.

Detailed explanation-5: -Economists use utility function to better understand consumer behaviors, as well as determine how well goods and services provide satisfaction to consumers. Utility function can also help analysts determine how to distribute goods and services to consumers in a way that total utility is realized.