Definition
- Utility
- Utility is the satisfaction or benefit a person gets from consuming goods and services.
- Not to be confused with: Economic agent
- An economic agent is a person or organisation that makes economic decisions, such as a household deciding what to buy, a firm or a government.
Test yourself
What is the difference between utility and economic agent?
An economic agent is the one who decides; utility is what a consumer, one kind of agent, is assumed to maximise.