The Concept of Utility

For instance, say that you have a bunch to shirts that fit you and make you feel comfortable utility of a good or service is essential to understand because affects the demand, thus the price of the good or service (Bunker & Thomson, 2006). To break down the utility, it can be measured as hard number to assist in satisfaction measurement. However, the designation of was created to present an amount of psychological satisfaction of a particular good or service. The utility can be divided into two that is, total utility and marginal utility. The total utility can be described as the total amount of satisfaction that an individual can receive from the use of all units for a particular product or service.