Final answer:
The value from production or alteration of a product providing satisfaction to consumers is known as form utility. It involves the transformation of materials into something more valuable, but as consumption increases, each additional unit provides less satisfaction according to the law of diminishing marginal utility.
Step-by-step explanation:
The value to consumers that comes from the production or alteration of a product or service constitutes form utility. This type of utility is created when raw materials or components are transformed into something of higher value to the consumer. For instance, wheat being made into bread adds form utility because it becomes more desirable for consumption.
This concept is a part of a greater discussion on utility in economics, which also includes the law of diminishing marginal utility. This law states that while consumption of the first units of a good or service brings significant satisfaction, the utility gained from each subsequent unit decreases over time.