Meaning:

Utility is a concept used in economics, philosophy, and other disciplines to describe the satisfaction or benefit derived from consuming goods and services or making choices. It is a measure of satisfaction of an individual get from the consumption of the commodity. In other word it is a measurement of usefulness that a consumer obtained from any good. A utility is a measure of how much one enjoy the movie, favorite food or other goods. Utility also refers to the usefulness or enjoyment a consumer can get from a service or goods. Here are some types of utility.

Types of Utility:

• Form utility: This utility is created by changing the form or shapes of the material for example a cabinet turn out from Steel, furniture made of wood.
• Place utility: This utility created by transporting goods from one place to another thus in marketing goods from the factory to the market. place utility is created. in the same way food grains are shifted from farms to the city market by the grains merchant place utility is created.
• Time utility: Storing, hoarding and preserving certain goods over a period of time may lead to the creation of time utility for such good. Example: by hoarding or storing food grains at the time of bumper harvest and releasing their stocks for sale at a time of scarcity traders derive the advantage of time utility and thereby fetch higher prices for food grains.
• Service utility: This utility is created in rendering personal services to the customer by various professional such as lawyers, Doctors, teacher, bankers, actor etc.

The other types of utility are:

1. Total Utility

The overall satisfaction or benefit a consumer gains from consuming a certain quantity of goods or services. Eg. If eating three slices of pizza gives you a satisfaction of 30 units, the total utility is 30 units.

2. Marginal Utility:

The additional satisfaction or benefit a consumer gains from consuming one more unit of a good or service. Eg. If eating a fourth slice of pizza gives you an additional satisfaction of 5 units, the marginal utility of the fourth slice is 5 units.

3. Cardinal Utility:

Assumes utility can be measured in exact units (like numbers) and that consumers can quantify their satisfaction levels. Eg. Saying that drinking a cup of coffee gives you 10 units of utility.

4. Ordinal Utility:

Assumes that while utility cannot be measured in exact units, it can be ranked or ordered. Eg. Preferring tea over coffee, but not specifying by how much.

5. Expected Utility:

Used in decision-making under uncertainty, it represents the expected satisfaction or benefit from an uncertain outcome. Eg. Deciding to invest in a stock by considering the potential gains and losses, weighted by their probabilities.

also read: explain the consumers equilibrium analysis.