Utility is a measurement of AMarginal cost BProduction CEffi

Utility is a measurement of A.Marginal cost B.Production C.Efficient production D.Happiness

Solution

Utility implies the want satisfying power of a good. A consumer will only demand a product if it has the power to satisfy the want for which he is buying the respective product. Fulfilment of want brings enjoyment or satisfaction or happiness to the consumer. Higher is the utility of product being purchased by the consumer, larger will be the enjoyment or satisfaction or happiness to the consumer.

Thus, in a way, utility measures the happiness to be derived from consumption of a commodity.

Hence, the correct answer is option (D).