Utility - Term Overview

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Utility is the measure of satisfaction by which individuals value the choice of certain goods or services.

In its broadest concept, we refer to utility as the interest or benefit that is obtained from the enjoyment or use of a particular good or service.

As a result, the greater the usefulness of the product, the greater the desire to consume it. Therefore, an attempt will be made to obtain greater amounts of this good as a greater utility is estimated. This, until reaching a point of satiety.

In this way, a series of consumer behaviors and preferences are configured at the individual and collective level, attending to utility and which, finally, gives rise to the important economic concept of demand.

The usefulness of a good or service is usually considered to have a high level of subjectivity, because different people will consider the same object and the satisfaction that its use gives it differently, taking into account their tastes, resources, and even fashions and trends. For this reason, the exact measurement of profits is highly complicated in economic terms.

In the broad field of economics, this kind of satisfaction is often identified as profit or gain. This usually applies to simple examples of investing or buying and selling assets.

In this sense, people shape and adapt their choices in the market, directing themselves towards those products that result in higher profits, always taking into account the resources available to them (time or money, for example).

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