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The goal of the consumer is to maximize the total utility or satisfaction derived from their purchase choices, given the unique budget constraint. To calculate
The goal of the consumer is to maximize the total utility or satisfaction derived from their purchase choices, given the unique budget constraint. To calculate total utility of a given combination of Tshirts and movies, one would use the following approach:
For a given combination of Tshirts and movies, assign a number of utils to that combination.
Use utils as a measure of utility, assigning a specific number to Tshirts and movies, and then add those together.
For a given combination of Tshirts and movies, survey a group of individuals to determine an average for utils to be assigned to the number of Tshirts and movies.
For a given combination of Tshirts and movies, use Google to identify the number of utils associated with the number of Tshirts and movies and then sum them.
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