a) The definition of utility

 Utility means a property is an object, whereby it tends to produce benefit, advantage, pleasure, good, or happiness, (all this in the present case comes to the same thing) or (what comes again to the same thing) to prevent the happening of mischief, pain, evil, or unhappiness to the party whose interest is considered: if that party be the community in general, then the happiness of the community.

 b) The prinicple on which it is based

 Everything you produce has to be useful for society,  to produce happiness or pleasure and to diminish pain.

 c) The way in which utility can affect policies

 A measure of government is utilitarian when its tendency to augment the happiness of the community is greater than any which it has to diminish it.