Concept of Utility:
In ordinary language, ‘utility’ means ‘usefulness’. In Economics, utility is stated as the power of a commodity or a service to gratify a human want.
Utility is a psychological or subjective concept. The similar commodity or service provides different utilities to dissimilar people. For vegetarian, mutton has no value. Warm clothes have little usefulness for the people in hot countries. Therefore effectiveness depends on the consumer and his requirement for the commodity.Total Utility:
Total Utility refers to the sum of utilities of every units of a commodity consumed. For illustration, when a consumer consumes ten biscuits, then the net utility is the sum of satisfaction of overwhelming all the ten biscuits.
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