what is utility? its characteristics

WHAT IS UTILITY?

It is a measure of satisfaction an individual gets from the consumption of the commodities.
 In other words, it is a measurement of usefulness that a consumer obtains from any good.
 A utility is a measure of how much one enjoys a movie, favorite food, or other goods. It varies with the amount of desire.It is simply the want satisfying power of a commodity.
According to Prof. Waugh:

“Utility is the power of commodity to satisfy human wants.”
One can conclude the following conclusions
  • A Utility of a good differs from one consumer to another.
  • It keeps on changing for the same consumer due to change in the amount of desires.
  • It should not be equated with its usefulness.

Characteristic of Utility

  • It is dependent upon human wants.
  • It is immeasurable.
  • A utility is subjective.
  • It depends on knowledge.
  • Utility depends upon use.
  • It is subjective.
  • It depends on ownership.

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