Fact checked by Ariel Courage Reviewed by Erika Rasure What Is Utility Function? In economics, the utility function measures the welfare or satisfaction of a consumer as a function of the ...

In cases where the utility function is increasing with upper and lower bounds then the utility function can be characterized by a distribution function, and we can take advantage of the various ...

The utility function measures a consumer’s preference for goods or services in terms of satisfaction. Learn how to calculate it and why it’s important to economists and businesses.