Entity: TOTAL-UTILITY
Total-utility refers to the overall satisfaction or happiness that a consumer experiences by consuming a certain quantity of goods or services. It represents the aggregate satisfaction gained from consumption, influencing individual choices based on preferences and available resources.
TOTAL-UTILITY
Etymology
The term 'total-utility' is derived from the concept of utility in economics, which refers to the satisfaction or happiness that individuals derive from consuming goods or services.
Definition
Total-utility is the overall level of happiness or satisfaction that a consumer experiences by consuming a certain amount of a good or service. It represents the aggregate satisfaction gained from consumption.
Historical Context
The concept of total-utility has its roots in classical economics, particularly in the works of economists like Jeremy Bentham and John Stuart Mill, who emphasized the importance of utility in understanding consumer behavior.
Cultural Significance
Total-utility plays a crucial role in modern economics, helping to explain how individuals make choices based on their preferences and available resources. It is a key concept in consumer theory and is used to analyze consumer behavior and decision-making.
Related Concepts
- Marginal Utility: Measures the change in utility from consuming one additional unit of a good or service.
- Consumer Surplus: Represents the difference between what consumers are willing to pay for a good or service and what they actually pay.
See Also
The degree of utility of an article, service, or other economic good considered as a whole, representing the complete amount of satisfaction gained.