Which term best describes the characteristics of a product that satisfy consumer wants and needs in microeconomics?

• A. Marginal cost
• B. Willingness to pay
• C. Consumer surplus
• D. Utility

Answer: (D)

Verified step by step guidance

1. Understand the concept of 'Utility' in microeconomics: Utility refers to the satisfaction or benefit a consumer derives from consuming a product or service. It measures how well a product satisfies consumer wants and needs.
2. Review the other terms to distinguish them from Utility: Marginal cost is the additional cost of producing one more unit of a good; Willingness to pay is the maximum amount a consumer is ready to pay for a product; Consumer surplus is the difference between what consumers are willing to pay and what they actually pay.
3. Recognize that the question asks for the term that describes the characteristics of a product that satisfy consumer wants and needs, which aligns with the concept of Utility.
4. Recall that Utility is a fundamental concept in microeconomics used to explain consumer choice and demand based on satisfaction levels.
5. Conclude that among the given options, Utility best fits the description of the product characteristics that satisfy consumer wants and needs.