utility measurement

Utility measurement is a way economists and decision-makers quantify the satisfaction or value that individuals derive from different goods or services. It helps compare how much a person prefers one option over another by assigning a numerical value to their overall happiness or usefulness. This concept allows for better understanding of choices, trade-offs, and how resources might be allocated to maximize well-being. While utility can't always be directly observed, it provides a useful framework for analyzing consumer behavior and making informed economic decisions.