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Concept Of Utility

Defination:- It denotes the want satusfying power of a commodity or service.

Meaning:- It is a measure of satisfaction a consumer receives from consumption of a commodity.

A utility can be explained as how much a person enjoy a movie, favourite clothes, favourite food and many more.

If a commodity is harmful but it satisfies a want, it possess utility.

Eg:- Wine or Cigarette.

* Utility is subjective and not objective.

Because it has the psychological. feeling of being satisfied from a commodity.

* Utility depends on the intensity of desire for them.

It depends as how much intensity of desire a consumer has for a particular product in his mind. Eg:- Desireness to watch a movie.

* Utility refers to the satisfaction expected from a product and satisfaction obtained from them. Eg:- A person is planning to go

Taidot: Article Writing

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