Hyötykäytäntö
Hyötykäytäntö, often translated as "utility function" in economics, is a concept used to represent consumer preferences. It is a mathematical expression that assigns a numerical value to different bundles of goods and services, reflecting how much satisfaction or utility a consumer derives from them. The higher the value, the more preferred the bundle.
The primary purpose of a hyötykäytäntö is to simplify the analysis of consumer behavior. By assigning numerical
It is important to note that a hyötykäytäntö is not unique. Different hyötykäytännöt can represent the same
The concept is foundational in microeconomics, particularly in demand theory and welfare economics. It helps explain