To economists, utility means
A)marginal value.
B)relative value.
C)satisfaction.
D)usefulness.

Question

Quizplus · Accepted Answer

Utility refers to the satisfaction or happiness that a consumer derives from consuming a good or service. It is a subjective measure of relative value, as different people may derive different levels of satisfaction from the same good or service depending on their personal preferences and circumstances. Utility is not directly related to the usefulness or practical value of a good or service, but rather to the consumer's perception of how much they benefit from it. Therefore, option C, satisfaction, best reflects the meaning of utility in economics.

To Economists, Utility Means