Question

Utility theory is the study of the __________ or relative desirability of a particular outcome that reflects the decision maker’s attitude toward a collection of factors, such as profit, loss, and risk.

Answer 1

Answer:

Utility theory is the study of the entire value or comparative attraction of a specific result that imitates the decision maker's attitude to an assortment of influences such as profit, loss and risk.

Consequently it is not only the economic wellness as diverse aspects add diverse utilities for unlike individuals.

Thus a) Total worth is the right answer, as we try to exploit the entire utility for that individual here and each individual has a diverse utility purpose that is each individual values it inversely.

Answer 2

Answer:

utility theory is the study of preference or relative desirability

Explanation:

utility theory terms to study how an individual could derive happiness from the consumption of a product or services