alleryWhich statement about the nature of utility is correct?
AUtility is identical across all consumers always
BUtility is always the same as usefulness
CUtility exists only while a good is consumed
DUtility is subjective and varies from person to person
Answer & Solution
Correct answer: D. Utility is subjective and varies from person to person
1. Utility is a subjective and relative entity, differing from person to person and across time and place.
2. A commodity can have utility even when it is not being consumed, so that option is wrong.
3. Utility is distinct from usefulness, and is not constant across consumers, ruling out the remaining options.
_Source: ICAI BoS CA Foundation Paper 4 Business Economics, Ch 2 Unit II "Theory of Consumer Behaviour", p.2_
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