Example, ownership of bread may be transferred from a canteen owner to a consumer when the customer buys it. Example, transporting books from a bookshop to the school Possessive Utility-this refers to the transfer of ownership of good and services from one person to another it maybe done through trade. Place Utility– this is bridging the geographical gap between the producer of commodity and its consumers through transportation. Example, storing food stuff in the school store during the holiday to use when the school opens. sugarcane may be converted into sugar Time Utility-this is created when a good is stored until it is appropriate time to use it. Types of utilityįorm utility –this is changing the form of a commodity by converting raw materials to finished goods. Utility_-is the ability of a good or services to satisfy human wants. It’s the creation of goods or provision of services to satisfy human wants It involves activities of transforming of materials into finished goods, transportation and storage Utility The real cost of satisfying any want is the alternative that has to be foregone in order to do soĬHAPTER FOUR OF FORM 1 BUSINESS STUDIES NOTES PRODUCTION Opportunity cost is the value of the best foregone alternative.
0 Comments
Leave a Reply. |