What is utility and it's types

The utility of goods is its want-satisfying capability. The more the stronger the aspiration to have it, the more is the utility procured from the goods. The utility is instinctive. Distinct people can get different degrees of utility from the same goods. For instance, someone who likes sweets will get much higher utility from a sweet than someone who doesn’t sweets. The utility that an individual obtains from the goods can differ with the change in location and time. For instance, utility from the use of an Air conditioner certainly relies upon whether the person is in Srinagar or Jaipur(location) or whether it is winter or summer (season).

• Total Utility – Total utility of a determined quantity of goods or commodity (TU) is the total contentment procured from utilizing the given amount of some goods ‘p’.

• Marginal Utility – MU is the difference in total utility due to the utilization of one extra unit of goods or commodity.

• Ordinal Utility Analysis – The customer does not quantify utility in numerals. All the theory of customer decision-making under constraints of certitude can be and mostly is, conveyed in the terms of ordinal utility.