Question

Utility is

1. a bill you pay for electricity
2. increasing
3. usefulness or satisfaction

Answer 1

Utility is the increasing usefulness or satisfaction that one obtains from consuming goods or services. Economists refer to the law of diminishing marginal utility, which states that as a person consumes more of a good, the additional satisfaction or utility obtained from each additional unit of the good declines.

Step-by-step explanation:

Utility is the increasing usefulness or satisfaction that one obtains from consuming goods or services. Economists refer to the law of diminishing marginal utility, which states that as a person consumes more of a good, the additional satisfaction or utility obtained from each additional unit of the good declines. For example, the first slice of pizza brings more satisfaction than the sixth slice. Utility is subjective and varies from person to person.