Question

If terry's total utility is maximized when he owns 10 pairs of shoes, then terry's total utility from owning 7 pairs of shoes is ______ terry's total utility from owning 8 pairs.

Answer 1

If terry's total utility is maximized when he owns 10 pairs of shoes, then terry's total utility from owning 7 pairs of shoes is less than terry's total utility from owning 8 pairs.

The benefit that a person receives from consuming all of a given commodity's units at once or over time is referred to as their total utility.

In other terms, total utility is the overall satisfaction attained through the consumption of numerous units of commodities and services. Every unit of a commodity has a marginal utility, which is a benefit gained from consuming an extra unit. The total utility is the total of all these marginal benefits.

The consumer tries to consume various combinations of products and services within the available restricted resources (money) in order to optimise his overall utility. Generally speaking, individuals try to get the most out of the money they spend on goods and services.

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