Question

23 The utility is generally related to
(A)Satisfaction
(B)Necessa
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Answer 1

Answer:

(A)Satisfaction

Utility is a term in economics that refers to the total satisfaction received from consuming a good or service. Economic theories based on rational choice usually assume that consumers will strive to maximize their utility.

Answer 2

The answer is A) Satisfaction.

• The utility is related to the satisfaction and enjoyment of the customers that they achieve from the consumption of goods or services.

• The utility of a product can decrease with the increase in consumption of the product.

• For example, the first glass of juice will give the highest utility to the consumer. As the number of glasses increases, the satisfaction level or utility of it decreases. It is because the consumer does not experience the same satisfaction as he did with the first glass of juice.