What is meant by utility?

Step 1: Analyze the question The question asks for the meaning of utility in Economics, a basic concept in consumer theory.

Step 2: Explain the concept In Economics, utility is the satisfaction, pleasure, or benefit a consumer gets from consuming a good or service. It is about the consumer and satisfaction, not about money or profit.

Related ideas:

• Total utility: the overall satisfaction from consuming all units of a commodity.
• Marginal utility: the extra satisfaction from consuming one more unit.
• Law of diminishing marginal utility: as you consume more units, the additional satisfaction from each extra unit falls.

Step 3: Check each option

• A. Money derived by a manufacturer: this describes revenue or income, not utility. ✗
• B. A number of things a consumer will enjoy at a time: this talks about quantity, not the satisfaction itself. ✗
• C. Amount of satisfaction derived from the consumption of a commodity at a particular time: this matches the definition exactly, since it names satisfaction, consumption, and the time element (utility varies with time). ✓
• D. Satisfaction given to a producer: utility is linked to consumers, not producers. ✗
• E. Total profit producers will get: this describes profit, not utility. ✗

Step 4: Answer The correct option is C.

Exam tip: Remember "Utility = Satisfaction". If an option mentions money, profit, or producers, it is almost certainly not about utility. Look for the words satisfaction and consumer/consumption.