Distinguish between:
3. Total utility and Marginal Utility
Answer:
3)
Total Utility
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Marginal Utility
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It is the aggregate utility derived from the consumption of all the units of a commodity.
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It is the addition to the total utility due to the consumption of an additional unit of a commodity.
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TUn = MU1 + MU2 + MU3 + ....+ MUn = ∑MU
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MUn = TUn– TUn –1
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It is the utility derived from all the units consumed.
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It is the utility derived from the last unit consumed.
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