Final answer:
When Mark buys insurance for a price of $8,000, his utility refers to the satisfaction or benefit he derives from purchasing the insurance policy.
Step-by-step explanation:
When Mark buys insurance for a price of $8,000, his utility refers to the satisfaction or benefit that he derives from purchasing the insurance policy. Utility can be subjective and varies from person to person. In this case, we can assume that Mark values the protection and financial security that the insurance provides, outweighing the cost of $8,000. Therefore, Mark's utility when he buys insurance for $8,000 is the satisfaction or benefit he gains from knowing that he is protected against potential losses.