The document discusses the meaning and types of utility in economics. It defines utility as the capacity of a commodity to satisfy human wants. There are several types of utility including form utility, place utility, time utility, service utility, ownership utility, basic utility, subjective utility, individual utility, knowledge utility, and cardinal and ordinal utility. Form utility is created by changing the shape of materials, place utility by transporting goods, and time utility by availability at a particular time. Service utility refers to services provided by professionals. Ownership utility is the transfer of goods from seller to buyer.

1. FUNDAMENTALS OF
BUSINESS ECONOMICS
{CC 103}
B.COMSEM-I

4. MEANING OF UTILITY
• The simple meaning of ‘utility’ is ‘usefulness’.
In economics utility is the capacity of a
commodity to satisfy human wants.
• Utility is the quality in goods to satisfy human
wants. Thus, it is said that “Wants satisfying
capacity of goods or services is called
Utility.”

5. TYPES OF UTILITY
• Form utility
This utility is created by changing the form or shape of the materials.
• Place Utility
This utility is created by transporting goods from one place to another place.
• Time Utility
Utility of a good or service created by its availability at a particular time.
• Service Utility
This utility is created in rendering personal services to the customers by various
professionals, such as lawyers, doctors, teachers, bankers, actors etc.
• Ownership Utility
It is the orderly transfer of goods and services from the seller to the buyer; also
called possession utility.

6. TYPES OF UTILITY
• Basic Utility
If the natural qualities present in a thing satisfy human needs, it is called
Primary Utility or Basic Utility.
• Subjective Utility
An object that satisfies only a certain person or group is called subjective
Utility.
• Individual Utility
Different satisfaction that different people get after consuming the same thing
is called individual Utility.
• Knowledge Utility
The increase satisfaction of people with increasing knowledge is called
knowledge Utility.
• Cardinal & Ordinal Utility
Satisfaction obtained through the consumption of different things when
measured comparatively is called cardinal utility.
Satisfaction gained through the consumption of different things when it cannot
be measured comparatively is called Ordinal utility.

7. THANKYOU
Prepared by
Dr.Jagdish Maheshwari
Assistant Professor,
Tolani Institute of Commerce,Adipur