What term means added value in economic terms?

What term means added value in economic terms?

• A. Time Utility
• B. Place Utility
• C. Utility
• D. Information Utility

Answer: (C)

Utility is the measure of usefulness or satisfaction a product or service provides to a consumer. In economics, added value comes from how much a product meets a buyer’s wants or needs, which is captured by utility. Time utility adds value by having something available when it’s needed, place utility adds value by being in a convenient location, and information utility adds value by providing helpful information. These are specific ways to increase value, but the overall concept that ties them together is utility.

Utility is the measure of usefulness or satisfaction a product or service provides to a consumer. In economics, added value comes from how much a product meets a buyer’s wants or needs, which is captured by utility. Time utility adds value by having something available when it’s needed, place utility adds value by being in a convenient location, and information utility adds value by providing helpful information. These are specific ways to increase value, but the overall concept that ties them together is utility.