utility function

Definition

A function that specifies the utility (well being) of a consumer for all combinations goods consumed (and sometimes other considerations). Represents both their welfare and their preferences.

Use utility function in a sentence

You need to make sure that you can come up with a good utility function for everything that you bring on.

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The utility function was something important that we had to look out for because it would help us and move us forward.

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The utility function of the wealthiest consumers of Apple products revealed that they found great value in the $10,000 iPad Watch that was coated with gold.

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marginal rate of technical substitution marginal rate of substitution