what is utility
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It models worth, value, usefulness, and/or satisfaction of something, it could be anything. I'll let you go further on your own with this and research more into this term. To start, take an object, it can be anything. You are trying to find it's utility, was it a good value to you? did it satisfy you? was it useful to you? all these will take part in finding the utility of that object.
I hope this was able to give you a small stepping stone and can help you carry on with it. Utility is big in economics and does not quite have a straight forward definition or answer when you get further into it. If you want further clarification or if you got something different please let me know!!
*My definition was NOT plagiarized and there was no copy, paste involved. This was what I know and what I came up with. At the same time, I ask that you don't copy and paste my definition... So tutors, don't get excited and tell me it's plagiarism ;)
Utility refers to the satisfaction or usefulness that an individual derives from consuming a product or service. It is a concept commonly used in economics to measure personal preferences and quantify the level of satisfaction that individuals gain from consuming goods and services.
To understand utility, one can start with the concept of marginal utility, which refers to the additional satisfaction derived from consuming one more unit of a good or service. Marginal utility decreases as a person consumes more of a particular good or service, following the principle of diminishing marginal utility. This means that the first unit consumed provides the highest level of satisfaction, the second unit provides slightly less satisfaction, and so on.
To determine the level of utility that a person receives from consuming a product or service, economists often use utility functions and scales. Utility functions assign a numerical value to different combinations or levels of goods and services to reflect an individual's preferences. These functions may vary from person to person, as individuals have different tastes, preferences, and objectives. Utility scales then measure the level of satisfaction or well-being achieved by each possible combination.
It is also important to note that utility can be subjective and difficult to quantify precisely. However, economists use the concept of utility to study consumer behavior, make predictions, and analyze market dynamics.