Which of the following best describes the utility from a specific product for a consumer?

• A. The minimum price at which the producer is willing to sell the product
• B. The maximum amount a consumer is willing to pay for the product
• C. The market price of the product
• D. The difference between total revenue and total cost

Answer: (B)

Verified step by step guidance

1. Understand the concept of utility in microeconomics: Utility represents the satisfaction or benefit a consumer derives from consuming a product or service.
2. Recognize that utility is related to the consumer's willingness to pay, which reflects the maximum amount a consumer values the product and is willing to give up to obtain it.
3. Distinguish utility from other economic terms: the minimum price a producer is willing to accept relates to supply, the market price is the actual transaction price, and the difference between total revenue and total cost refers to profit.
4. Identify that the utility from a specific product for a consumer is best described by the maximum amount a consumer is willing to pay for that product, as it captures the consumer's valuation and satisfaction.
5. Conclude that among the given options, the correct description of utility aligns with the consumer's maximum willingness to pay.