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Measures and Properties of Utility


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What Is Utility?
In economics, the concept of utility is a way to quantify the amount of happiness that an individual receives from consuming a good or service. While utility has a number of definitional properties- sign matters, more utility is better, and utility has ordinal but not cardinal meaning- it's also helpful to think about some other general properties that goods and services tend to exhibit. In order to do this, however, it's important to understand the various ways to measure utility.

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