Define Utility. Briefly Discuss Various Concepts Of Utility
XI Economics Utility & Various Concepts Of Utility
Wednesday, December 4, 2019
utility:
‘’Utility is define as the satisfaction which is derived from the consumption of some goods or services’’
Various concepts of utility:
1. Initial utility:
Initial utility is the satisfaction which obtains from the consumption of the first unit of commodity or goods, For example: when a person consumed the first unit of mango then he obtains utility is called initial utility.
2. Positive utility:
When the level of satisfaction increases unit of commodity of that situation of utility is called positive utility.
3. Zero utility:
When a consumer does not obtain utility from the consumption of commodity is called zero utility.
4. Negative utility:
When the consumption of commodity gives harm instead of utility in consumer is called negative utility.
5. Marginal utility:
It is the amount of added utility obtained from one unit increases in consumption. Marginal utility means the quantity of satisfaction which is obtained from the consumption of additional unit of commodity.
6. Total utility:
It is the utility which is obtained from the consumption of all units of commodity where marginal utility is zero total utility will be maximum.when marginal utility become zer its total utility will be maximum.
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