how to measure a utility
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Answer:
We can try to measure utility by using a hypothetical unit of measurement – utils. For example, if you go to a supermarket, you may feel a bag of apples gives you a moderate utility of 20 utils. By comparison, a large pizza may give a greater satisfaction of 50 utils.
Answer:
In economics, utility simply means the satisfaction that a consumer experiences from a product or service. While the concept is considered an important factor in decision-making and product choice, it presents a problem for economists trying to incorporate the concept to microeconomics models because utility varies among consumers for the same product, and it can be influenced by other factors, such as price and the availability of alternatives.