Utilities

In economics, utility is the amount of relative joy or satisfaction (gratification) is achieved. With this amount, one can determine the increase or decrease in utility, and then explain the economic habits in the corridors of the effort to increase one's satisfaction. Teoritikal units for the sum of utility is the util.

The doctrine of utilitarianism, elihat maximization of utility as a moral criterion for the organization in the community. According to the utilitarian, such as Jeremy Bentham (1748-1832) and John Stuart Mill (1806-1876), society should aim to maximize the number of individual utility, aims to "the greatest happiness for the greatest number".

In neoclassical economics, rationality is precisely defined in terms of habits of utility maximization under certain economic conditions. As a hypothetical business habits, the utility does not require any mental state as "happiness", "satisfaction", etc..

Utilities used by economists in the construction of the indifference curve, which acts as a combination of commodities that are needed by individuals or communities to maintain their level of satisfaction. Individual utility and public utility can be made as a fixed variable of the utility function (eg such as indifference curve map) and the social welfare function. When paired with a commodity or production, these functions can represent Pareto efficiency, which is described by the Edgeworth box and the contract curve. This efficiency is the main concept of welfare economics.

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