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Difficulty: Very hardMeaning and Types of Production

An agricultural enterprise in Benue State harvested yams during the peak harvest season, stored them in climate-controlled warehouses for six months, and subsequently transported them to urban markets in Port Harcourt during the off-season period of scarcity. Which type of economic utility was primarily created through the storage and preservation phase of this production operation?

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

Answer

Time utility is created when goods are preserved and stored during periods of abundance so that they become available at a later time when demand and economic value are higher.
In economic theory, production is complete only when utility is created for consumers. By preserving harvested crops in climate-controlled storage and releasing them during periods of scarcity, the enterprise makes commodities available at the desired point in time, thereby creating time utility.

Step-by-Step Solution

1
Identify the core production phase highlighted in the stem.
The question explicitly isolates the storage and preservation phase in climate-controlled warehouses.
Production in economics is defined as the creation of utility (satisfying human wants through form, place, time, or possession utility).
2
Evaluate the nature of utility added by warehouse preservation across time.
Holding goods over time bridges the gap between peak production and peak consumer demand, creating time utility.
The physical state of the yams remains unchanged (not form utility), and spatial movement describes place utility.

Key Concept

Creation of Utility in Production (Time Utility)
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Topics

Meaning and Types of Production

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