Question

Point out the main characteristics of utility.

Answer 1

The following are the characteristics of utility.

i. Utility is Subjective: Utility is subjective.

It means utility of a commodity differs from person to person. 

Tea is of great utility for a man who is accustomed to it, but it has no utility for a man who is not used to it. 

ii. Utility is Relative: Utility is a relative concept.

A commodity may possess different utility at different times or at different places. 

For example, a raincoat has greater utility in rainy season than in other seasons. 

iii. Utility has got no Real Existence: Whether any person would get more or less utility from the consumption of any commodity, is completely a psychological factor.

Hence, utility has got no real existence.

For example, utility of wine is created to any drunkard. But when that person gives up the habit of drinking then wine will no longer create any utility. 

iv. Utility is Abstract: Utility is the capacity of a commodity to satisfy want.

Utility is abstract in the sense that it cannot be seen or touched. 

For example, knowledge of a teacher cannot be seen or touched.

v. Utility is not Pleasure: It is not necessary that a commodity possessing utility also gives pleasure when we consume it.

For example, quinine is bitter in taste but it has the utility to treat the patient from malaria.

Hence, there is no relationship between utility and pleasure.