What are the features of utility.?
Answers
Explanation:
The following are the important characteristic features of utility:
•Utility has no Ethical or Moral Significance: ...
•Utility is Psychological: ...
•Utility is always Individual and Relative: ...
•Utility is not Necessarily Equated with Usefulness: ...
•Utility cannot be Measured Objectively: ...
•Utility Depends on the Intensity of Want:
Utility:
Utility's definition is 'usefulness' in its most basic form. In economics, utility refers to a product's ability to meet human needs. The ability of commodities to satisfy human desires is referred to as utility.
Utility features:
1. There is a psychological component to utility.
It all depends on the consumer's mindset. Mutton, for example, is of little use to a vegetarian.
2. Usefulness is not the same as a utility.
A smoker, for example, derives utility from a cigarette, but his health suffers as a result.
3. Usefulness is not the same as enjoyment.
Taking medicine provides value to a sick person, but it does not provide pleasure.
4. Utility is a highly personal concept.
In different conditions and locales, one and the same good might provide a person with varying levels of usefulness.
5. The intensity of human desire determines utility.
The utility of a single customer tends to dwindle over time.
6. Utility is impossible to quantify objectively.
It is a subjective idea that cannot be quantified in any way.
7. There is no ethical or moral relevance to utility.
A cook, for example, gains utility from a knife that he uses to cut vegetables, and a killer wants to attack his opponent with an identical knife. A commodity has utility in economics if it satisfies a human want.
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