Following are the main characteristics of utility:
(i) Utility is subjective i.e., it cannot be observed and identified. It depends on the individuals own subjective estimate of the amount of satisfaction, that he wants to get from something.
(ii) Utility cannot be measured in objective terms. It cannot be quantified and cannot be measured by any measuring rod. However, some economists maintain that utility can be measured in terms of money.
(iii) Utility is not absolute but it is relative in view of its subjective nature. It is relative to a person’s need. Therefore, it varies from person-to-person.
(iv) Utility is abstract in the sense that it cannot be seen or touched.
