Utility/Satisfaction
Utility or satisfaction is a term used in economics to describe the total satisfaction or benefit derived from consuming a good or service. It is a measure of the value of a good or service to an individual or group of individuals. Utility is often used to compare the relative value of different goods and services, and to determine the optimal level of consumption of a good or service. Utility is also used to measure the efficiency of a market, and to determine the optimal level of production of a good or service.
History of Utility/Satisfaction
The concept of utility was first developed by the 18th-century philosopher and economist Jeremy Bentham. Bentham argued that the utility of a good or service was determined by the pleasure or pain it produced. He proposed that the utility of a good or service could be measured by the amount of pleasure or pain it produced. This concept was later refined by the 19th-century economist William Stanley Jevons, who argued that the utility of a good or service was determined by the amount of satisfaction it produced.
The concept of utility was further developed by the 20th-century economist John Maynard Keynes, who argued that the utility of a good or service was determined by the amount of satisfaction it produced relative to the cost of producing it. Keynes argued that the utility of a good or service could be measured by the amount of satisfaction it produced relative to the cost of producing it. This concept was later refined by the 20th-century economist Paul Samuelson, who argued that the utility of a good or service was determined by the amount of satisfaction it produced relative to the cost of producing it and the amount of satisfaction it produced relative to the cost of consuming it.
Comparison Table
| Good/Service | Utility |
|---|---|
| Good A | 10 |
| Good B | 20 |
| Good C | 30 |
Summary
Utility or satisfaction is a term used in economics to describe the total satisfaction or benefit derived from consuming a good or service. It is a measure of the value of a good or service to an individual or group of individuals. Utility is often used to compare the relative value of different goods and services, and to determine the optimal level of consumption of a good or service. More information about this term can be found on websites such as Investopedia, The Balance, and Investing.com.
See Also
- Marginal Utility
- Consumer Surplus
- Producer Surplus
- Deadweight Loss
- Opportunity Cost
- Marginal Cost
- Marginal Revenue
- Price Elasticity of Demand
- Price Elasticity of Supply
- Income Elasticity of Demand
