TU and MU

Utility is...

• the whole economics

• the individual units

• the study of general units

• the quantity of satisfaction earned from a good/service by a person

What is NOT the Feature of Utility?

• Price Theory

• Psychological concept

• Ethically neutral concept

• Multi-purpose

What is a RELATIVE CONCEPT?

• concept related to time

• concept related to place

• concept related to time and place

• concept related to people

What does the Multi-purpose?

• satisfies the want of 1 person

• doesn't satisfies the want

• satisfies the rules

• satisfies the want of more than 1 person

What ARE the Types of Utility?

• Form

• Service

• Knowledge

• Place

Total Utility is...

• partial satisfaction

• total satisfaction

• unit's satisfaction

• individual satisfaction

Marginal Satisfaction is...

• total satisfaction

• partial satisfaction

• additional satisfaction

• individual satisfaction

TU=....

• TU= ∑ TU

• TU= ∑ QU

• TU= ∑ AU

• TU= ∑ MU

MU=...

• MU= TUn - TU(n-1)

• MU= TUn + TU(n-1)

• MU= TUn - TU(n+1)

• MU= TU(n-1) - TUn

What are NOT the Assumptions of DMU (Diminishing Marginal Utility)?

• Rationality

• Continuity

• Reasonability

• Place