What is Utility?
The characteristic of a good or service that allows it to fulfil the needs of consumers is comprehended as its “utility.” It is the fulfilment—actual or anticipated—that results from the consumption of a good or service. Utility is a relative concept, this means that it differs from individual to individual, from location to location, and from period to period. A utility is its ability to satisfy a need.
Simply put, Utility is the want satisfying power of a commodity.
It is considered to be measured in terms of cardinal numbers such as 1, 2, 3, 4, and so on. These are known as utils or units of utility. Thus, four utils are more significant than three utils, three utils are more significant than two utils, and so on.
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