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What are the different forms of utility?
There are four main forms of utility: form utility (changing the physical characteristics of a product to make it more valuable), time utility (making a product available when customers want it), place utility (making a product available where customers want it), and ownership utility (transferring ownership of a product to the customer).
What is total and marginal utility?
Total utility is the overall utility achieved by using any product while marginal utility is the increase/decrease in utility from use of one more unit of product.
An improvement that makes a product satisfy its purpose better is an improvement to the product's utility?
Yes. An improvement that makes a product satisfy its purpose better is an improvement to the product's utility.
Total utility is maximized when?
You maximize utility when marginal utility divided by the price of product A is equal to the marginal utility divided by the price of product B. MUa/Pa=MUb/Pb or MUa/MUb= Pa/Pb
How does a consumer maximize total utility?
You maximize utility when marginal utility divided by the price of product A is equal to the marginal utility divided by the price of product B. MUa/Pa=MUb/Pb or MUa/MUb= Pa/Pb
What is meant by time utility and place utility and identify how the transportation function adds utility to product?
PLACE UTILITY - The movement acrosss place or distance of one product to its destination. TIME UTILITY - created by warehousing and storing products until they are needed. TRANSPORTATION is a factor of time utility; it determines how fast and how consistently a product moves from one point to another. This is known as time-in-transit and consistency of service.
The utility of a specific product?
varies from person to person
Definition of time utility and place utility?
What are the importance of time utility and place utility
When there is one scarce resource the product that should be produced first is the product the with highest?
marginal utility. By producing the product with the highest marginal utility first, the producer can maximize the overall benefit generated from the limited resource.
What are the economic utilities that relate to marketing?
Marketing's sole purpose is to convince consumers that a certain product will add to their overall utility, or satisfaction one gets from a good.
What is the degree to which the product offers utility to a potential customer?
Relevence
How does utility affect demand for a product?
Utility is the satisfaction you obtain from getting that product. Consumers will buy products that give them larger utilities than those products that give little or no utility. Therefore, there will be more demand for products that offer more utility, given that the price doesn't overshadow its level of satisfaction.
