That property of a commodity which satisfies the wants of the consumers is called utility. Then it is want satisfying power of a commodity. It is subjective and ethically neutral concept. Sum of utilities derived from the consumption of certain units of a commodity. Number of units consumed increased total utility increases with a diminishing rate.
The quantity of product that the consumers are willing to buy at a given price over a given period of time is called demand for that product. Thus demand is: The desire for possession and The willingness (and ability) to pay for. It is clear that demand is always at a price. The price and quality demanded have an inverse relationship.
It is Price discrimination when a company charges different price to different consumers for similar products and service, for reasons not related with differences in cost. It should be keep in mind that charging different prices for the associated products or services is not pure price discrimination.
Entrepreneur as factor of production is basically taken from French and first time used by Richard Cantillon. The term Entrepreneur used for a person who willingly launch an enterprise and take the whole responsibility for the consequences and result from the business in the future. Entrepreneur as factor of production main function is the reallocation of economic resources to higher output.
Capital as factor of production includes all material resources (excluding land) or stock of wealth used productively. The meaning of Capital in economics is more precise and restricted than its meaning to a businessman or an accountant. A stock of money, shares in a company or a private hoard of consumer goods is not capital.
Labor as factor of production is any human effort used productively (with an output of goods or services) for which payment is made. Honorary work and work for enjoyment are excluded. Special Features (a) Perish ability (b) inseparability from labour
Land factor of production includes not only area of the earth surface but all resources that are a gift of nature as mineral deposits. Special Features of Land: (a) Supply is strictly limited in quantity (b) Imperishable (c) Immoveable-site cannot be transferred
The ultimate aim of all factors of production is consumption. In a simple economy the producer consumes his own product (a hunter catching a fish). In advanced communities most products are produced for exchange of other products through money.