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What is Utility? Cardinal Utility, Total Utility & Marginal Utility Definition, Diagram, Table

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Every day, we consume a range of items. By consuming the goods and services we derive satisfaction. The satisfaction derived from consumption of goods & services is called Utility in Economics. Is utility measured or ranked? The question has been answered by economist stating that utility can be measured with the help of cardinal and ordinal Approach. What is cardinal Approach of measuring Utility? The cardinal approach of measuring utility is the one wherein the utility is quantifiable. The utility is measured in utils. Let us understand this with the help of an example. Let us say, you derive 30 utils of satisfaction by consuming 1 plate of Momo and derive 20 utils of satisfaction by consuming 1 Pineapple Pizza. Then we can say that eating one plate of Momo gives more satisfaction or we can say Momo gives more of utility.   Eating second plate of Momo gives you 40 utils of satisfaction, the utility derived increase, but as we eat more and more, beyond a point we don't...
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What is PPC? Why is PPC downward sloping? Why is PPC Concave What is Opportunity Cost? What is Marginal Opportunity Cost

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Every economy be it rich or poor, developed or underdeveloped faces these three Problems: (i) What to Produce? (ii) How to Produce? (iii) For Whom to Produce? Based on the above questions we will find out whether a country should Produce capital goods or consumer goods. The goods country is producing should be using labour intensive or Capital intensive techinque of production. As resources are scarce so, whether the goods should be produced for the rich or the poor? The questions to the answer is based on the kind of economies that the country operates under. Above questions to an extent can be answered with Production Possibility Curve (PPC). But before that, What is PPC? PPC also known as Transformation Curve or Transformation Line is the Cuve showing the various combination of two goods that can be produced using the scarce resources given that the resources are fully and efficiently utilized and the technique of production is constant. Graphical representation o...
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