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Question
Is the following statement true or false?
Utility and satisfaction mean the same thing.
True or False
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Solution
This statement is false.
Explanation:
Utility in economics refers to the total satisfaction or benefit derived from the consumption of a good or service, but it is not synonymous with satisfaction itself.
Utility is the capacity of a commodity to satisfy a want and is considered an abstract concept indicating usefulness or want-satisfying power.
Satisfaction is more subjective and personal, while utility refers to the potential to satisfy.
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