Tag: measurement of utility

Measurement of Utility and its Relationship with other Utilities

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Utility The power to satisfy one’s want or desire is the utility of the commodity. You can take measurement of utility. The literal meaning of the term ‘utility’ is ‘usefulness’ but in economics, it implies the capacity to satisfy the want of a good. Simply to say, utility is value-in- use of a commodity. Utility…

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Managerial Economics

Assumptions and Conditions of Consumer Equilibrium

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“A consumer is in equilibrium when he regards his actual behaviour as the best possible under the circumstances feels no urge to change his behaviour as long as circumstances remain unchanged”.
utility is value-in- use of a commodity. Utility is the derivative of consumption which implies subjective satisfaction. Simply, ‘utility’ describes consumer preferences according to modern theory of consumer behaviour.

Managerial Economics