Question

Charactersticks of utility​

Answer 1

Answer:

Four characteristics of utility are form, time, place, and possession.

Answer 2

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Characteristics of utility :

(1) Utility is a subjective concept: It is a psychological concept. It is the mental assessment of a commodity. So utility differs from person to person because of difference in taste, preference, likes and dislikes of a person. E.g., chalks have more utility to a teacher than a student.

(2) Utility is a relative term: It is related to time and place. With change in time and place, utility of the same commodity changes. Cold drinks have more utility during summer than winter. Woolen clothes have more utility in Kashmir than Mumbai.

(3) Utility depends on the intensity of want: More urgent or intense the want, more will be the utility. E.g. Books have more utility to students just before the exams.

(4) Utility differs from usefulness: Utility indicates the power of a good to satisfy human wants irrespective of whether it is good or bad or harmful. While usefulness means that the commodity is beneficial or desirable. A commodity may have utility but may not be useful. E.g., cigarette is injurious to health, it is not useful but it has utility to a smoker.

(5) Utility cannot be measured: Utility is psychological and subjective. It is intangible. So it cannot be measured cardinally or numerically. It can only be expressed ordinally. Eg., first slice of bread will have very high utility for a very hungry person than the 2nd slice. But Marshall assumes that utility can be cardinally measured.

hope it helps........... ⬇️