Briefly discuss 2 characteristics of utility
1. Subjectivity: Utility is inherently subjective, as it represents the satisfaction or pleasure a person derives from consuming a good or service. This means that individuals may assign different levels of utility to the same item based on their own preferences, needs and circumstances.
2. Diminishing Marginal Utility: This concept states that as an individual consumes more of a good or service, the additional satisfaction or utility derived from each additional unit decreases. In other words, the more of something we consume, the less each additional unit adds to our overall well-being. This principle helps explain why people may value the first slice of pizza more than the fourth, for example.