Utility analysis is the analysis of
A) the formation of tastes and preferences.
B) the differences of tastes and preferences across individuals.
C) the consumption decisions of people based on utility maximization.
D) how consumers determine the utility they receive from consumption.

Question

Quizplus · Accepted Answer

Utility analysis is the study of how consumers make consumption decisions based on maximizing their utility. It involves analyzing how consumers assign values to different goods and services based on their needs and preferences and how they make choices based on the maximization of their overall utility. Therefore, option C, "the consumption decisions of people based on utility maximization," is the best choice.

Utility Analysis Is the Analysis of