ABOUT UTILITY CONCEPTS WITH EXAMPLES

UTILITY:
            By economist, the word utility means satisfaction.
The amount of satisfaction that we get from the consumption of a product or services , called UTILITY.
       In simple words,
Utility means usefulness, the product that gives us the positive impact in which we satisy, called UTILITY.

ULTILITY is measured in "UTILS".

For example - when a person is hungry and want to eat pizza and he goes to pizza hut and consumes pizza , where as his hungryness is over, which gives him satisfaction, this type of example is termed as UTILITY.

KINDS OF UTILITY:
                           1. MARGINAL UTILITY
                           2. TOTAL UTILITY
                           3. AVERAGE UTILITY

1.MARGINAL UTILITY - An extra or     additional unit of the product is consumed by customer till the last unit of consumption , called MARGINAL UTILITY.

For example - suppose, Rahul consuming bread and he takes 4 bread, By consuming 1 bread he derives utility up to 10 in 2 bread he derives utility up to 8 in 3 bread he derives utility upto 6 and in 4 bread he derives utility upto 4. In this example marginal utility is 4th bread and marginal utility derives is 4. If he consumes only 3 bread then marginal utility be 6 bread and utility derive will be 6.

2.TOTAL UTILITY - The utility which we get from all unit of consumption, called TOTAL UTILITY.

For example - Suppose, Rahul consumes 5 bread at a time. He derives from 1st bread 10 unit of satisfaction from 2nd is 8 in 3rd is 6 and in 4th is 4,  then total utility will be 28.

3.AVERAVE UTILITY - The utility in which the total unit of consumption of goods is divided by number of total units known as AVERAGE UTILITY.

For example - If 1 bread utility is 10, 2nd bread utility is 8, 3rd bread utility is 6, then
10+8+6 divided by 3 ,then the average  utility will be 8