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Question
Which of these is not a method of creating utility in production?
Which of these is not a method of creating utility in production?
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Solution
The correct option is A Marginal Utility
Marginal utility
refers to additional utility which a consumer gets on consuming one extra unit
of a commodity. So, as consumer consumes more and more of a commodity, the
satisfaction at each level will diminish.
Production is the
process of creating or adding utility to the raw materials and creating a
full-fledged product which can satisfy the demands of the consumers. Therefore, marginal utility is not a method of creating utility in production.
Marginal utility refers to additional utility which a consumer gets on consuming one extra unit of a commodity. So, as consumer consumes more and more of a commodity, the satisfaction at each level will diminish.
Production is the process of creating or adding utility to the raw materials and creating a full-fledged product which can satisfy the demands of the consumers. Therefore, marginal utility is not a method of creating utility in production.
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