Question

Every morning Pete buys a cup of coffee from the vending machine located down the hall in his office building. The location of the vending machine creates form utility for Pete.
true/false

Answer 1

The given statement "Every morning Pete buys a cup of coffee from the vending machine located down the hall in his office building. The location of the vending machine creates form utility for Pete" is False.

Answer: Option A

Explanation:

The vending machine's location for coffee is found down the hall though in his building, so he needs to put in extra work to get the coffee for himself every morning. The economic utility has four parameters, time; place; form; and possession.

Out of these 4, we are here the statement discussing form utility whereas the given statement could serve as an example of place and time utility. Form utility refers to the utility being such an accomplishment to the customer so as to imply full satisfaction which is not the case here.