Utility

In economics, utility is a measure of preferences over some set of goods and services. The
concept is an important underpinning of rational choice theory.

Utility is an important concept in economics and game theory because it represents satisfaction
expected by the consumer of a good .A good is something that satisfies human wants .Since one
cannot directly measure benefit, service.Economists instead have devised ways of representing
utility in terms of economic choices that can be measured.Economists have attempted to parfect
highly abstract meth0ds of comparing utilities by observing and calculating economic choices. In
the simpliest sense economists,consider utility to be revealed in peoples willingness to pay
different amounts for different goods .

Because of scarcity economics need to allocate their resources efficiently. Underlying the loss
of demand and supply is the concept of utility. Which represent the advantage or fulfillment a
person receives from consuming a good or service. Utility , then, explain how individuals and
economies aim to gain optimal satisfaction in dealing with scarcity. Utility is an abstract concept
rather than a concrete observable quantity. The units to which we assing an amount’ of utility .
Therefore, are arbitrary , representing relationship value.