Economics SSS 2 Second Term

WEEK 2

Elementary treatment of utility theory

Performance Objectives

Student should be able to:

1. Define the concept of utility.
2. Differentiate between total, average and marginal utility.
3. Explain why the utility curve slopes download.

Content

The concept of utility

Utility may be defined as the satisfaction received from consuming a good or service at any particular time. The economic utility of a good and service is important to understand, because it directly influences demand, and therefore the price of that good or service. Utility can be said to be relative to consumer and the variations among the individuals or consumers depend on time, place and form.

Types of utility

1. Form utility:Form utility refers to how well a product or service meets the customer's needs. For.... View More