Question

1. Utility may be defined as:
(a) Power of a commodity to satisfy wants
(b) Usefulness of a commodity
(c) Desire for a commodity
(d) None of these
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Answer 1

Answer:

A

Explanation:

A is the correct answer here..

Answer 2

The correct answer is Option(a) Power of a commodity to satisfy wants.

• The term utility states how a commodity is productive, useful, etc.

• We always expect to get full satisfaction from a commodity we purchase, this means full utilization of resources.

• The usefulness of a commodity is how we use the product in a productive way.

• The desire for a commodity is the expectation for a commodity.