Q.What are the important features of Utility ?

Utility, the want-satisfying power of a good, is subjective, relative, distinct from usefulness and from satisfaction, ethically neutral, and (in the cardinal view) measurable.

Meaning. Utility is the capacity of a commodity or service to satisfy a human want.

Important features of utility:

1. Subjective / psychological — utility exists in the mind of the consumer; it differs from person to person and even for the same person at different times.
2. Relative — the utility of a good is not fixed; it varies with time, place and circumstances (e.g. woollens have high utility in winter, low in summer).
3. Utility is different from usefulness — a good can have utility even if it is harmful (e.g. liquor or cigarettes have utility to a consumer though they are not useful/beneficial).
4. Utility is different from satisfaction — utility is the expected want-satisfying power before consumption, while satisfaction is realised after consumption. …