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  2. Utility - Wikipedia

    en.wikipedia.org/wiki/Utility

    In economics, utility is a measure of a certain person's satisfaction from a certain state of the world. Over time, the term has been used with at least two meanings. In a normative context, utility refers to a goal or objective that we wish to maximize, i.e., an objective function.

  3. Marginal utility - Wikipedia

    en.wikipedia.org/wiki/Marginal_utility

    Utility is an economic concept that refers to the level of satisfaction or benefit that individuals derive from consuming a particular good or service, which is quantified using units known as utils (derived from the Spanish word for useful). However, determining the exact level of utility that a consumer experiences can be a challenging and ...

  4. Marginalism - Wikipedia

    en.wikipedia.org/wiki/Marginalism

    Marginalism is a theory of economics that attempts to explain the discrepancy in the value of goods and services by reference to their secondary, or marginal, utility. It states that the reason why the price of diamonds is higher than that of water, for example, owes to the greater additional satisfaction of the diamonds over the water.

  5. Cardinal utility - Wikipedia

    en.wikipedia.org/wiki/Cardinal_utility

    In economics, a cardinal utility expresses not only which of two outcomes is preferred, but also the intensity of preferences, i.e. how much better or worse one outcome is compared to another. [ 1 ] In consumer choice theory , economists originally attempted to replace cardinal utility with the apparently weaker concept of ordinal utility .

  6. Marginal concepts - Wikipedia

    en.wikipedia.org/wiki/Marginal_concepts

    The marginal utility of a good or service is the utility of the specific use to which an agent would put a given increase in that good or service, or of the specific use that would be abandoned in response to a given decrease. In other words, marginal utility is the utility of the marginal use.

  7. Social welfare function - Wikipedia

    en.wikipedia.org/wiki/Social_welfare_function

    In welfare economics and social choice theory, a social welfare function—also called a social ordering, ranking, utility, or choice function—is a function that ranks a set of social states by their desirability.

  8. Use value - Wikipedia

    en.wikipedia.org/wiki/Use_value

    In neoclassical economics, this utility is ultimately subjectively determined by the buyer of a good, and not objectively by the intrinsic characteristics of the good. Thus, neoclassical economists often talk about the marginal utility of a product, i.e., how its utility fluctuates according to consumption patterns. This kind of utility is a ...

  9. Utility maximization problem - Wikipedia

    en.wikipedia.org/wiki/Utility_maximization_problem

    In expenditure minimisation the utility level is given and well as the prices of goods, the role of the consumer is to find a minimum level of expenditure required to reach this utility level. The utilitarian social choice rule is a rule that says that society should choose the alternative that maximizes the sum of utilities.