Question

Distinguish between:

1. Utility and usefulness

2. Utility and satisfaction

3. Total utility and Marginal Utility

4. Place utility and Time utility

Answer 1

1)

Utility	Usefulness
It is the want satisfying power of a commodity.	It is the benefit obtained from a commodity.
It signifies the level of satisfaction.	It indicates value in use of a commodity.
A commodity that possesses utility may not always be useful.	A commodity that is useful will always possess some utility.

2)

Utility	Satisfaction
It is the want satisfying power of a commodity.	It is the feeling of happiness derived by the consumer.
Utility is derived or obtained by a person.	Satisfaction is experienced by the person.
It is the anticipated level of satisfaction.	It is actually realised by the consumer.
It is the starting point of consumption.	It is the end result of consumption.

3)

Total Utility	Marginal Utility
It is the aggregate utility derived from the consumption of all the units of a commodity.	It is the addition to the total utility due to the consumption of an additional unit of a commodity.
TUn = MU1 + MU2 + MU3 + ....+ MUn = ∑MU	MUn = TUn– TUn –1
It is the utility derived from all the units consumed.	It is the utility derived from the last unit consumed.

4)

Place utility	Time utility
It is the utility derived from the change in the place of utilisation.	It is the utility derived from the change in the time of utilisation.
It increases with the change in the place of utilisation.	It increases with the change in the time of utilisation.
It is created when a good is transferred from the place of production to the place of consumption.	It is created by storing goods so that they can be used when the demand arises.