Which of the following statements best describes time utility?

• A. Time utility refers to the value added to a product by making it available to consumers when they need or want it.
• B. Time utility is the satisfaction a consumer receives from the physical features of a product.
• C. Time utility is the usefulness of a product based on its ability to satisfy a consumer's taste preferences.
• D. Time utility is created by transporting goods from one location to another.

Answer: (A)

Verified step by step guidance

1. Step 1: Understand the concept of 'time utility' in microeconomics, which refers to the value added to a product by making it available at the right time when consumers want or need it.
2. Step 2: Recognize that time utility is different from other types of utility such as form utility (value added by changing the physical characteristics of a product) or place utility (value added by moving goods to a convenient location).
3. Step 3: Analyze each statement by comparing it to the definition of time utility: the correct statement should emphasize availability of the product at the right time.
4. Step 4: Identify that the statement 'Time utility refers to the value added to a product by making it available to consumers when they need or want it' directly matches the definition of time utility.
5. Step 5: Conclude that the other statements describe different types of utility or consumer satisfaction, and therefore do not best describe time utility.