A utility function
A) needs to measure the absolute level of happiness.
B) needs to measure relative amounts of happiness for a single individual.
C) helps compare the relative happiness of two separate consumers.
D) is most useful if it can be influenced by others.
E) measures relative happiness and income of consumers.

Question

Quizplus · Accepted Answer

A utility function measures the relative amounts of happiness or satisfaction that a single individual derives from different bundles of goods or services.

A Utility Function