The utility function measures a consumer’s preference for goods or services in terms of satisfaction. Learn how to calculate it and why it’s important to economists and businesses.

The utility function can be used to derive the demand function, and both concepts relate to utility maximization. Skip to content. News Markets Companies Earnings CD Rates Mortgage Rates ...

In economics, utility function is an important concept that measures preferences over a set of goods and services. Utility represents the satisfaction that consumers receive for choosing and ...