In: Economics
25. Which of the following provides the best description of total utility?
It is the total amount the consumer was wiling to pay for one more unit of a good or service.
It is the total amount the consumer actually paid for the last unit of a good or service that was purchased.
It is the total amount the consumer was willing to pay for the total amount of a good or service that was purchased.
It is the total amount the consumer actually paid for a good or service that was purchased.
Answer: it is the total amount that the consumer actually paid for a good or service that was purchased.
Total utility basically refers to the complete satisfaction that a consumer gets with the purchase or consumption of goods or service. Utility basically quantifies the satisfaction or fulfillment.