Meaning
- Utility means the power of commodity that satisfy any want of person. It is a satisfaction derived by consumer after consuming any product .
- A power of a commodity to satisfy human wants .
- When a commodity is capable of satisfying human wants , we can conclude that the commodity has utility.
- Utility differ from person to person, place to place and time to time .
- There was no standard unit for measuring utility so,economist derived an imaginary measure known as "util".
e.g-
A child needs a glass of milk if he consumed this commodity and satisfy then milk have some utility to satisfy the need of that boy.
Characteristic of utility
1) It is subjective - it means it differ from person to person.
e.g - if a person who like mango juice ,if he consume on glass of juice he has maximum satisfaction.
but if the person who do not like so much juice if he consume satisfaction will be low.
2) Different from pleasure - A commodity may have utility but its consumption may not give any pleasure to the consumer
e.g- an injection or medicine tablets gives no pleasure but it is very necessary for every patient.
3) It is different from moral point of view
e.g - the person who drink wine he gets satisfaction but it not consider moral.
4) It is differ from usefulness
e.g - cigarette may give satisfaction for cigarette smoker , but it is injurious to health.
5) It can be both positive as well as negative .
e.g - when the fist time any consumer consume something then utility will be more but when he will consume more and more utility may be negative.
6) It related to consumable goods only
e.g - mango,because mango can consume any consumer so mango have some utility for consumer.
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