What does utility refer to in microeconomics?

Utility in microeconomics refers to the satisfaction or pleasure that a consumer derives from consuming a good or service. It is a key concept used to explain consumer behavior and preferences, as it helps to illustrate how individuals make choices based on their desire to maximize their overall happiness or satisfaction.

When consumers evaluate different goods, they consider the utility each good provides them. This evaluation influences their purchasing decisions, as they typically choose combinations of goods that yield the highest total utility within the constraints of their budget. Therefore, understanding utility is essential for analyzing consumer choices and market demand.

In contrast, the other options do not pertain to the concept of utility. The total revenue from selling goods relates more to the financial performance of a business, the cost of producing a good pertains to production economics, and the total amount of money spent involves expenditure rather than the satisfaction derived from consumption. Hence, the correct answer captures the essence of utility as it is defined in microeconomics.