Which of the following describes the concept of utility in economics?

Utility in economics refers to the satisfaction or benefit that a consumer derives from consuming a good or service. It essentially measures how well a product or service meets the needs or wants of individuals. The concept is fundamental in understanding consumer choice and decision-making, as individuals typically aim to maximize their utility when making purchases or choosing between different options. This focus on satisfaction directly relates to consumer preferences and is critical for analyzing market behavior and demand.

In contrast, the other options do not align with the true meaning of utility. The legal definition of ownership rights pertains to property law, while a cost assessment relates to evaluating expenses or pricing without implying satisfaction. An evaluation of market demand involves understanding how much of a product consumers are willing to purchase, which, while related, does not capture the satisfaction aspect that utility embodies. Thus, the choice that accurately describes the concept of utility is the measure of how effectively a product satisfies a need or want.