Production creates
A) time utility.
B) possession utility.
C) form utility.
D) marginal utility.

Question

Quizplus · Accepted Answer

Production involves transforming raw materials or inputs into finished goods with added value, which results in the creation of form utility. Form utility refers to the increase in usefulness or desirability that a product gains through the production process, such as the conversion of wood into furniture. Time utility refers to making products available when they are needed, possession utility refers to the transfer of ownership or control of a product to the buyer, and marginal utility refers to the additional satisfaction or benefit gained from consuming one more unit of a product. None of these accurately describe the output of production itself.

Production Creates