Describe the meaning of utility in economics and explain why it is different from one consumer to another

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Social Studies

Henson

13 May, 14:13

Describe the meaning of utility in economics and explain why it is different from one consumer to another

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Rodney Mckee · Answer 1

Utility is widely used in economic science to explain how consumers or decision makers make their choices in the best way.

Even if it is not possible to measure the utility that a consumer attributes to a specific good, the theory seeks to compare and classify the alternatives of choice to the good. Is not possible because the consumers have their own parameters and specifics to choose a good.