Changing the structure of a commodity in order to increase its utility is called?

Step 1: Analyze the question The question asks for the name given to the process of changing the structure (shape or form) of a commodity so that it becomes more useful or satisfying.

Step 2: Explain the concept In Economics, utility is the satisfaction a person gets from consuming a good or service. Production is often described as the creation of utility. There are different types:

• Form utility: created when raw materials are changed into a finished product (e.g., cocoa beans processed into chocolate, timber turned into a chair).
• Place utility: created when goods are moved from where they are plentiful to where they are needed (e.g., transporting yams from Benue to Lagos).
• Time utility: created when goods are stored until they are needed (e.g., storing grains after harvest and selling them during the off-season).
• Marginal utility: the extra satisfaction gained from consuming one more unit of a good. It is not a type of production activity.

Step 3: Solve

• Changing the structure of a commodity means changing its form.
• A: Time utility involves storage, not structure. Wrong.
• B: Form utility involves changing shape or structure. Correct.
• C: Marginal utility is about additional satisfaction from an extra unit. Wrong.
• D: Place utility involves location or transportation. Wrong.

Step 4: Answer The correct option is B. Form utility.

Exam tip: Match the keyword to the utility type:

• Structure, shape, or processing → Form
• Movement or transport → Place
• Storage or waiting → Time
• Extra unit → Marginal