Question

By economic utility we mean:

Product’s being in a form that (1) can be used by the customer and (2) is of value to the customer.
Having products available where the customers need them; products are moved from points of lesser value to points of greater value.
Having products available when customers need them.
The value or usefulness of a product in fulfilling customer needs or wants.
The value or usefulness that comes from a customer being able to take possession of a product.

Answer 1

Economic utility refers to the value and usefulness of a product in fulfilling consumer needs and wants, including considerations of form, place, and time. It is influenced by the law of diminishing marginal utility, which indicates that satisfaction from additional units of consumption decreases over time.

Step-by-step explanation:

Economic utility refers to the value or usefulness of a product in satisfying a consumer's needs or wants. There are several types of utility, including form utility, which means the product is in a usable state; place utility, involving the product's availability where consumers need it; and time utility, ensuring products are available at the right time. The concept of utility is central to consumers' decisions, as it represents the satisfaction or benefits derived from consuming goods and services.

According to economists, the value of an item is linked to its scarcity and its utility. If a consumer perceives the utility of a product to exceed the price, they are likely to make a purchase. This notion of subjective value is reinforced by the law of diminishing marginal utility, which highlights that the satisfaction a consumer derives from a product decreases with each additional unit consumed.