Which statement is true?
A)The utility of a satellite dish is greater than the utility of a cell phone.
B)A $24 ticket to a Detroit Tigers baseball game provides the ticket-holder with more utility than a $75 ticket to see a Detroit Red Wings hockey game.
C)A half-hour swimming lesson would provide twelve different people with exactly the same utility.
D)No one would pay for a service that provided him with no utility.

Question

Quizplus · Accepted Answer

This statement is true since utility is the satisfaction or benefit a consumer derives from the consumption of a good or service. If a service provided no utility, there would be no reason for consumers to pay for it. A consumer always seeks to maximize the utility derived from his/her purchases.

Which Statement Is True