Utility is the want-satisfying power of a commodity. It is the satisfaction, actual or expected, obtained from the consumption of a commodity. Characteristics of Utility are: Utility is psychological: It depends on the mental attitude and assessment of the person consuming the commodity and also his likes and dislikes.

Marginal utility = total utility difference / quantity of goods difference

1. Find the total utility of the first event.
2. Find the total utility of the second event.
3. Find the difference between both (or all) events.
4. Find the difference between the number of goods between both (or all) events.
5. Apply the formula.

Utility is a term in economics that refers to the total satisfaction received from consuming a good or service. The economic utility of a good or service is important to understand, because it directly influences the demand, and therefore price, of that good or service.

This argument can be written as another rule: the utility-maximizing choice between consumption goods occurs where the marginal utility per dollar is the same for both goods, and the consumer has exhausted his or her budget.

Utility maximisation refers to the concept that individuals and firms seek to get the highest satisfaction from their economic decisions. For example, when deciding how to spend a fixed some, individuals will purchase the combination of goods/services that give the most satisfaction.

: the utility or satisfaction an article gives to an individual based upon his personal judgment and desires rather than upon market judgment.

Economists use the term utility to describe the pleasure or satisfaction that a consumer obtains from his or her consumption of goods and services. Utility is a subjective measure of pleasure or satisfaction that varies from individual to individual according to each individual’s preferences.