A _____________________ measures the level of satisfaction that a consumer receives from any basket of goods.
A)production function
B)transformation function
C)utility function
D)transitivity function

Question

Quizplus · Accepted Answer

A utility function is used to measure the level of satisfaction that a consumer receives from any basket of goods. A production function measures the quantity of output that can be obtained from a given combination of inputs, while a transformation function represents the relationship between the quantity of inputs and the quantity of output. Transitivity function is not a term used in economics. A utility function measures the level of satisfaction or happiness that an individual derives from consuming a certain combination of goods and services. It is a mathematical representation of individual preferences, and provides a way to compare different bundles of goods.

A _____________________ Measures the Level of Satisfaction That a Consumer