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Question
What is average utility?
What is average utility?
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Solution
Average utility refers to the utility that is obtained by the consumer per unit of commodity consumed. It is calculated by dividing the total utility by the number of units consumed.
Also read:
- Difference Between Total Utility and Marginal Utility
- Consumer Equilibrium Utility Analysis
- Difference Between Cardinal and Ordinal Utility Study Material
- Utility
Learn about more questions and answers on business studies and various other commerce topics from our website.
Average utility refers to the utility that is obtained by the consumer per unit of commodity consumed. It is calculated by dividing the total utility by the number of units consumed.
Also read:
- Difference Between Total Utility and Marginal Utility
- Consumer Equilibrium Utility Analysis
- Difference Between Cardinal and Ordinal Utility Study Material
- Utility
Learn about more questions and answers on business studies and various other commerce topics from our website.
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