Question

Utility theory serves as a way to a. find out why firms produce what they do. b. increase the overall demand of consumers. c. decrease the overall level of output of a firm. d. determine the satisfaction recorded from the consumption of goods.

Answer 1

The right answer for the question that is being asked and shown above is that: " d. determine the satisfaction recorded from the consumption of goods." Utility theory serves as a way to d. determine the satisfaction recorded from the consumption of goods.

Answer 2

correct answer is

D) : Determine the satisfaction recorded from the consumption of goods.

Explanation:

Economics conception that though it's not possible to live the utility derived from an honest or service, it's typically attainable to rank the alternatives in their order of preference to the buyer. Since this alternative is affected by the worth and therefore the financial gain of the buyer, the rational client won't pay cash on a further unit sensible|of excellent service unless its utility is a minimum of up to or bigger than that of a unit of another good or service. Therefore, the worth of an honest or service is said to its utility and therefore the client can rank his or preferences consequently.