A utility function measures a consumer’s preference and satisfaction with different goods or services. As part of rational choice theory, it helps economists analyze how consumers make decisions to ...

William Baumol writes in "Economics: Principles and Policy" that the total monetary utility of a collection of goods to a consumer is equal to the largest amount of money the consumer will pay in ...

Steven Nickolas is a writer and has 10+ years of experience working as a consultant to retail and institutional investors. Andy Smith is a Certified Financial Planner (CFP®), licensed realtor and ...