Utility Concept

Utility, base concept of all consumer theory represents the satisfaction or pleasure that the consumers take from consuming of a certain good. Despite being difficult to quantify and measure, is through the utility concept that is possible to explain the way how its consumers can make their consumption choices considering their available income and the prices of goods and, therefore, explain the shape of the search curbs. Such is possible because, despite not being possible to quantify utility, it´s possible to sort the goods by preference order.

See also Marginal Utility

 

 

Translated from Portuguese by Susana Saraiva, Portuguese-English and English-Portuguese translation specialist. Contact: spams@sapo.pt.