Final answer:
A product or service is defined as an item that provides value and utility to the customer compared to other alternatives. Value is determined by scarcity and can be measured in dollars and cents, while utility refers to the usefulness and satisfaction the product or service provides.
Step-by-step explanation:
A product or service is defined as an item that has value and utility to the customer compared to other alternatives. In economics, value is determined by scarcity and can be expressed in dollars and cents. Utility refers to the usefulness and satisfaction that the product or service provides to the consumer. For example, when deciding to purchase a product or service, individuals, businesses, and governments assess if the item is worth the value placed on it. They consider factors such as the item's usefulness and if it provides satisfactory benefits or outcomes.