Question

Which of the following is true according to what has been offered in this class? Group of answer choices

a. Utility is always and only measured in dollar units

b. Utility is defined as the satisfaction derived from the consumption of a good

c. Levels of utility can easily be compared across differing individuals

d. All of the above are true

e. Both a and b are true

Answer 1

The answer is option B) Utility is defined as the satisfaction derived from the consumption of a good

Step-by-step explanation:

Utility means satisfaction.

Utility in economics, refers to the usefulness or enjoyment a consumer can get from a service or good.

People buy goods and services for the utility they derive and seek better goods and services to maximize Utility.

The two main types of utility is economic and marginal Utility.

Economic utility can decline as the supply of a service or good increases. Marginal utility is the utility gained by consuming an additional unit of a service or good.