Question

Air conditioning systems that are manufactured in the Winter will be stored until customers are ready to buy them in the Spring. The temporary storage of these systems creates time utility for customers.
True or False?

Answer 1

Answer:

True

Explanation:

Utility is the total satisfaction a consumer derives from consuming a good or a service.

There are four types of utility:

1. Time utility - it is utility derived from providing a consumer with the goods he wants at the time he wants them.

2. Form utility : it's utility derived from providing a consumer with the exact goods he needs.

3. Place utility - it is utility derived from providing a consumer with goods and services.

4. Possession utility: it is utility derived from owning a good.

I hope my answer helps you.