Define utility in economics

Economics Dec 17, 2020

Define utility in economics.

Expert Solution

The amount of value an item or service has to a consumer is called its utility in economics. Utility can be difficult to measure and is somewhat subjective, but it's very important in determining the price and payment for an object. A customer may gain some amount utility from buying one apple in terms of enjoyment and nutrition, but the utility of buying 10 apples may diminish in value depending on appetite and diet, making utility a difficult number to pin down.

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