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Question

Difficulty: MediumMeaning and Types of Production

A commercial fish farming enterprise in Asaba harvests fresh catfish from its ponds, processes a portion into dried smoked fish to prolong shelf life, and transports the packaged products to retail markets in Warri. Which type of utility is primarily created through the smoking and packaging stage of this business?

  1. Form utilityAnswer
  2. B
    Place utility
  3. C
    Possession utility
  4. D
    Service utility

Answer

Form utility
Form utility is created whenever raw materials or primary products are transformed into a different physical shape, state, or structure that increases their capacity to satisfy human wants. Processing fresh catfish into dried smoked fish alters the physical condition of the product, thereby creating form utility.

Step-by-Step Solution

1
Analyze the economic activity performed during the processing stage.
Raw harvested catfish undergo smoking and packaging, changing their physical state into preserved fish.
Production is defined as the creation of utility. Changing the form, shape, or physical condition of a raw material to increase its usefulness constitutes form utility.
2
Distinguish between the different types of utility created across the supply chain.
Processing creates form utility, transportation creates place utility, storing creates time utility, and retail selling creates possession utility.
Since the question specifically asks about the smoking and packaging stage, it refers to physical transformation, which is form utility.

Key Concept

Types of Utility in Production
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Topics

Meaning and Types of Production

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