Search results
Results From The WOW.Com Content Network
Economists distinguish between total utility and marginal utility. Total utility is the utility of an alternative, an entire consumption bundle or situation in life. The rate of change of utility from changing the quantity of one good consumed is termed the marginal utility of that good. Marginal utility therefore measures the slope of the ...
In business, total value added is calculated by tabulating the unit value added (measured by summing unit profit — the difference between sale price and production cost, unit depreciation cost, and unit labor cost) per each unit sold. Thus, total value added is equivalent to revenue minus intermediate consumption.
Suppose that a buyer has value v and bids b. His opponent bids according to the equilibrium bidding strategy. The support of the opponent's bid distribution is [0,B(1)]. Thus any bid of at least B(1) wins with probability 1. Therefore, the best bid b lies in the interval [0,B(1)] and so we can write this bid as b = B(x) where x lies in [0,1].
Formally, exponential discounting occurs when total utility is given by ({} =) = = (()) where c t is consumption at time t, δ is the exponential discount factor, and u is the instantaneous utility function.
In economics, a discount function is used in economic models to describe the weights placed on rewards received at different points in time. For example, if time is discrete and utility is time-separable, with the discount function f(t) having a negative first derivative and with c t (or c(t) in continuous time) defined as consumption at time t, total utility from an infinite stream of ...
The main problem for total utilitarianism is the "mere addition paradox", which argues that a likely outcome of following total utilitarianism is a future where there is a large number of people with very low utility values. Parfit terms this "the repugnant conclusion", believing it to be intuitively undesirable. [4]
Bang for buck is a concept in utility maximization which refers to the consumer's desire to get the best value for their money. If Walras's law has been satisfied, the optimal solution of the consumer lies at the point where the budget line and optimal indifference curve intersect, this is called the tangency condition. [ 3 ]
In economics, a unit demand agent is an agent who wants to buy a single item, which may be of one of different types. A typical example is a buyer who needs a new car. There are many different types of cars, but usually a buyer will choose only one of them, based on the quality and the