Meaning of utility:

The concept of Utility was introduced in economics by Prof. William Stanley Jevons, an English economist. According to him utility is the quality possessed by an object of producing pleasure or preventing pain. The features and forms of utility is the main subject.

 In economics, “utility” refers to the satisfaction, pleasure, or fulfillment that individuals derive from consuming goods and services. It is a measure of the benefit or value that individuals place on the goods and services they consume. Utility means want satisfying power of a commodity or service.  Any thing that satisfies human wants is said to have utility. The concept of utility is central to understanding consumer behavior and preferences. The features and forms of utility are.

Features of Utility:

1. Subjective Nature: Utility is subjective and varies from person to person. What provides satisfaction or pleasure to one individual may not have the same effect on another. It depends on personal preferences, tastes, and circumstances.
2. Diminishing Marginal Utility: The principle of diminishing marginal utility states that as a person consumes more of a good or service, the additional satisfaction or utility derived from each additional unit tends to decrease. In other words, the more you have of something, the less additional satisfaction each additional unit provides.
3. Ordinal Measurement: Utility is often considered an ordinal concept, meaning that it is expressed in terms of preferences and rankings rather than precise numerical values. While economists use the concept of utility to analyze choices, it is challenging to assign specific numerical values to levels of utility.
4. Not Interpersonal Comparable: Since utility is subjective, it is not easily comparable between individuals. One person’s utility cannot be directly compared to another’s because it depends on personal preferences and individual circumstances.
5. Total and Marginal Utility: Total utility refers to the overall satisfaction or pleasure derived from the consumption of all units of a good or service. Marginal utility, on the other hand, is the additional satisfaction obtained from consuming one more unit of the good or service.
6. Indifference Curves: Indifference curves are graphical representations used in microeconomics to show combinations of goods and services that provide an individual with the same level of satisfaction or utility. These curves help illustrate individual preferences.

Forms of Utility:

1. Form Utility: Form utility is created when raw materials are transformed into finished goods. For example, the process of manufacturing turns raw materials into products with increased usefulness and value.
2. Place Utility: Place utility is created by making a product available at a location where customers can conveniently purchase it. Efficient distribution and retail networks contribute to the creation of place utility.
3. Time Utility: Time utility is created by making a product available at a particular time when customers want or need it. For example, seasonal sales or the availability of fresh produce when it’s in demand.
4. Possession Utility: Possession utility is created by facilitating the transfer of ownership or possession of a product from the seller to the buyer. This involves making the purchasing process easy and convenient.
5. Service Utility: It refers to the creation of utility through the rendering of some services which satisfy human wants. Utility created by the services of doctors, lawyers, teachers, dancers singers. Etc. are examples of service utility.

also read: explain the properties of land and labor.