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What Is Utility and What Is Its Relevance to Rational

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What is utility and what is its relevance to rational behaviour?


Definitions:

Total Cost

The aggregate financial sum incurred by a firm in the production of goods or services, including both fixed and variable costs.

Average Cost

The total cost of production divided by the quantity of output produced, reflecting the cost per unit of output.

Restoration Cost

The expenditure required to return a damaged asset to its previous condition or to a condition deemed acceptable.

Potential Buyers

Individuals or organizations that have the interest and ability to purchase goods or services but have not yet made a transaction.

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