To explain:
If an individual and his/her friend both watch a movie and like it, whether it is justifiable to say that they both receive same amount of utility.
Explanation of Solution
Even though both individuals liked the movie, this does not mean that both get the same utility levels. The concept of utility differs from person to person. This is because utility depends on the experience or benefit that a person derives from the consumption of goods and services, and these benefits or experiences differs from person to person. Therefore, even though both liked the movie very much,it cannot be said that both the persons are receiving same amount of utility.
Utility:
It is the level of satisfaction that an individual gets after consuming goods and services. The level of utility varies from consumer to consumer and the quantity of commodities and services.
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Chapter 16 Solutions
Principles of Economics (Second Edition)
- Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
- Exploring EconomicsEconomicsISBN:9781544336329Author:Robert L. SextonPublisher:SAGE Publications, Inc