Which of the Following Is TRUE of Utility

question 16

Multiple Choice

Which of the following is TRUE of utility?

• A) The three utilities-form, price, and ownership-are created by marketing.
• B) Utility is defined as a ratio of benefits to costs, as viewed from the eyes of the beholder.
• C) Form utility is created when products are available to customers at a convenient location.
• D) The four major kinds of utility are form, time, place, and ownership.
• E) Place utility is created when the firm converts raw materials into finished products that are desired by the market.

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Definitions:

Information Aggregation

involves the process of combining various pieces of information to form a comprehensive understanding or make decisions, often used in the context of markets or decision theories.

Special-Interest Issue

Issues that concern specific groups within society, often leading to the formulation of policies or laws that disproportionately benefit these groups at the expense of broader public interest.

Economic Gains

Economic gains refer to the increase in economic benefit, usually measured in terms of profit, productivity, or market share, achieved through various economic activities.

Economic Losses

Financial deficits that occur when expenses exceed revenues, or due to lost opportunities, inefficiencies, or unexpected market changes.