Question: What is utility and how do we use the concept of utility to describe a consumers preferences?

What is utility and how do we use the concept of utility to describe a consumer’s preferences?

Step by Step Solution

★★★★★

3.31 Rating (169 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Utility is the benefit a person gets from the consumption of goo... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

684-B-E-E-P (618).docx

120 KBs Word File

Students Have Also Explored These Related Economics Questions!

Q:

How do we use correlation and covariance to manage the tradeoff between risk and return? Provide an example

Q:

Do probability distributions measure what did happen or what will probably happen? How do we use probability distributions to make decisions? Give an example of how you could use a probability...

Q:

What is residual value? How do we use residual value in calculating depreciation under the straight- line method?

Q:

answer plss 1. Suppose an individual's "health preferences" are represented by the utility function u(5,e, h} = s[2 a] + h, whore s is sugar, e is exercise, and h is its general state of health. In...

Q:

What is utility and how do we use the concept of utility to describe a consumers preferences?

Q:

2 What is utility and how do we use the concept of utility to describe a consumers preferences?

Q:

1 What is utility and how do we use the concept of utility to describe a consumers preferences?

Q:

How does utility describe a consumer's preferences? Utility is the benefit or satisfaction from consumption of goods and services. the practical usefulness of a good. equal to the price of a good....

Q:

Why do economists use the concept of utility to describe peoples tastes?

Q:

=+ do economists use the concept of utility to describe peoples tastes?

Q:

The average production of peanuts in Virginia is 3000 pounds per acre. A new plant food has been developed and is tested on 60 individual plots of land. The mean yield with the new plant food is 3120...

Q:

For the year ended December 31, 2012, Telmarine Electrical Repair Company reports the following summary payroll data. Gross earnings: Administrative salaries $200,000 Electricians' wages 370,000...

Q:

Bond valuationlong dash Semiannual interest Find the value of a bond maturing in 8 8 years , with a $ 1 comma 0 0 0 1 , 0 0 0 par value and a coupon interest rate of 1 3 1 3 % ( 6 . 5 6 . 5 % paid...

Q:

4. Explain the role of the sales manager.

Q:

Rapid inflation in Brazil in the early 1990s caused the cruzeiro to lose its ability to function as money. Which of the following commodities would most likely have taken the place of the cruzeiro in...

Q:

A 26-year-old Montreal man appears to have succeeded in his quest to barter a single, red paperclip all the way up to a house. It took almost a year and 14 trades. Is barter a means of payment? Is it...

Q:

Why would banks create websites to educate students about financial management? The RBC says lines of credit for education are popular and the size of loans to students has been going up as tuition...

Q:

A researcher has conducted a study and has obtained a data set. He is seeking your help and requests that you calculate the mean, range, median, and mode and distinguish which of these are measures...

Q:

If a bond pays $50 interest semi-annually with a par value of $1,000, its coupon rate is 5% 10% 15% 20% Investors are willing to purchase bonds with a call feature only if the bonds offer a(n)...

Q:

Why is growing the number of users such an important metric for social media companies? How does Metcalfes Law relate to the profitability of social media companies? How could LinkedIn help create...