Question

What is utility explain basic assumption of utility analysis?

Answer 1

utility is the state of being useful, profitable, or beneficial.

Answer 2

ᴜᴛɪʟɪᴛʏ.

ʙʏ ᴄᴏɴsᴜᴍɪɴɢ ᴍᴏʀᴇ ᴀɴᴅ ᴍᴏʀᴇ ᴜɴɪᴛs ᴏғ ᴄᴏᴍᴍᴏᴅɪᴛʏ ᴛʜᴇ ʟᴇᴠᴇʟ ᴏғ sᴀᴛɪsғᴀᴄᴛɪᴏɴ ᴅᴇʀɪᴠᴇᴅ ᴄᴀʟʟᴇᴅ ᴜᴛɪʟɪᴛʏ.

ᴍᴇᴀsᴜʀᴇᴍᴇɴᴛs ᴏғ ᴜᴛɪʟɪᴛʏ :

ᴛʜᴇʀᴇ ᴀʀᴇ ᴛᴡᴏ ᴡᴀʏs ᴛᴏ ᴍᴇᴀsᴜʀɪɴɢ  ᴜᴛɪʟɪᴛʏ :

 1⃣. ᴄᴀʀᴅɪɴᴀʟ ᴍᴇᴀsᴜʀᴇᴍᴇɴᴛs

ᴍᴇᴀsᴜʀɪɴɢ ᴜᴛɪʟɪᴛʏ ɪɴ ᴛᴇʀᴍs ᴏғ ɴᴜᴍʙᴇʀs ᴏʀ ᴜɴɪᴛs ʟɪᴋᴇ 1⃣,2⃣,3⃣.

ғᴏʀ ᴇxᴀᴍᴘʟᴇ : ᴡʜᴇɴ ᴡᴇ ᴄᴏɴsᴜᴍᴇ ᴀ ᴄᴜᴘ  ᴏғ ᴄᴏғғᴇᴇ,ᴡᴇ ᴄᴀɴ ᴇxᴘʀᴇss ᴏᴜʀ  sᴀᴛɪsғᴀᴄᴛɪᴏɴ ᴀs ᴇϙᴜᴀʟ ᴛᴏ 2⃣ ᴜɴɪᴛs ᴏʀ 3⃣ ᴜɴɪᴛs.

2⃣. ᴏʀᴅɪɴᴀʟ ᴍᴇᴀsᴜʀᴇᴍᴇɴᴛs

ᴍᴇᴀsᴜʀɪɴɢ ᴜᴛɪʟɪᴛʏ ɪɴ ᴛᴇʀᴍs ᴏғ ʀᴀɴᴋ(ʜɪɢʜ ᴏʀ ʟᴏᴡ),ɪɴ ᴛʜɪs sɪᴛᴜᴀᴛɪᴏɴ ɪᴛ ᴄᴀɴɴᴏᴛ ʙᴇ ᴇxᴘʀᴇss ɪɴ ᴜɴɪᴛs .

ғᴏʀ ᴇxᴀᴍᴘʟᴇ: ᴀ ᴄᴜᴘ  ᴏғ ᴄᴏғғᴇᴇ ɢɪᴠᴇs  ᴜs  ɢʀᴇᴀᴛᴇʀ sᴀᴛɪsғᴀᴄᴛɪᴏɴ ᴛʜᴀɴ ᴀ ᴄᴜᴘ ᴏғ ᴛᴇᴀ .ᴡᴇ ᴄᴀɴɴᴏᴛ sᴀʏ ᴛʜᴀᴛ ᴀ ᴄᴜᴘ ᴏғ ᴄᴏғғᴇᴇ  ɢɪᴠᴇs 3ᴜɴɪᴛs ᴏғ ᴜᴛɪʟɪᴛʏ ᴀɴᴅ ᴀ ᴄᴜᴘ ᴏғ ᴛᴇᴀ ɢɪᴠᴇs 2 ᴜɴɪᴛs ᴏғ ᴜᴛɪʟɪᴛʏ.

ᴀssᴜᴍᴘᴛɪᴏɴs ᴏғ ᴜᴛɪʟɪᴛʏ.

1.ᴀ ᴄᴏɴsᴜᴍᴇʀ sʜᴏᴜʟᴅ ʙᴇ ʀᴀᴛɪᴏɴᴀʟ ᴛʜᴀᴛ ʜᴇ/sʜᴇ ʜᴀᴠᴇ ᴀ  ғᴜʟʟ ɪɴғᴏʀᴍᴀᴛɪᴏɴ  ᴏғ ᴛʜᴀᴛ  ᴄᴏᴍᴍᴏᴅɪᴛɪᴇs.ᴛʜᴇʏ ᴀʟsᴏ ʜᴀᴠᴇ ᴀʙɪʟɪᴛʏ ᴛᴏ  ᴄᴏᴍᴘᴀʀᴇ ᴛʜᴇ ᴜᴛɪʟɪᴛɪᴇs ᴅᴇʀɪᴠᴇᴅ ғʀᴏᴍ  ᴅɪғғᴇʀᴇɴᴛ ɢᴏᴏᴅs.

    2⃣.  ᴛʜᴇ sᴇᴄᴏɴᴅ ᴍᴏsᴛ ɪᴍᴘᴏʀᴛᴀɴᴛ  ᴀssᴜᴍᴘᴛɪᴏɴ ᴡᴀs ᴛʜᴀᴛ ᴜᴛɪʟɪᴛʏ ᴅᴇʀɪᴠᴇ  ғʀᴏᴍ ᴄᴏɴsᴜᴍɪɴɢ ɢᴏᴏᴅs ᴄᴀɴ ʙᴇ  ᴍᴇᴀsᴜʀᴇᴅ ɪɴ ᴛᴇʀᴍs ᴏғ ᴍᴏɴᴇʏ.

     

      3⃣. sᴛᴀɴᴅᴀʀᴅ ᴜɴɪᴛs ᴏғ ᴛʜᴇ  ᴄᴏᴍᴍᴏᴅɪᴛʏ ᴀʀᴇ ᴄᴏɴsᴜᴍᴇᴅ.

  4⃣.ᴘʀɪᴄᴇ ᴏғ ᴀ ᴄᴏᴍᴍᴏᴅɪᴛʏ ᴅɪᴅ ɴᴏᴛ  ᴠᴀʀɪᴇs ᴛʜᴇ ʟᴇᴠᴇʟ ᴏғ sᴀᴛɪsғᴀᴄᴛɪᴏɴ.ᴄᴏɴsᴜᴍᴘᴛɪᴏɴ ᴏғ ᴀ ᴄᴏᴍᴍᴏᴅɪᴛʏ sʜᴏᴜʟᴅ ɢɪᴠᴇ  ʜɪɢʜᴇʀ sᴀᴛɪsғᴀᴄᴛɪᴏɴ ᴀs ᴘᴇʀ ᴛʜᴇɪʀ ᴘʀɪᴄᴇ.

ʜᴏᴘᴇ ᴛʜɪs ᴍᴀʏ ʜᴇʟᴘs ʏᴏᴜ✌️