The difference between total utility and marginal utility is that marginal utility is the:

Inhaltsverzeichnis Show

Meaning of Total Utility:
Meaning of Marginal Utility:
Download the chart: –
Conclusion: –
What is difference between total utility and marginal utility?
What is the difference between total utility and marginal utility quizlet?
What is the relationship between total utility and marginal utility?
What is the difference between marginal utility and marginal product?

The main difference between Total Utility and Marginal Utility is that the total utility refers to the satisfaction derived by a consumer from the consumption of a certain amount of a commodity whereas Marginal Utility refers to the additional satisfaction derived by the consumer from consumption of one more unit of a commodity.

To understand its difference, first, we have to know the meaning of both terms:

Meaning of Total Utility:

Total Utility refers to the total satisfaction obtained from the consumption of all possible units of a commodity. For example, if consumption of one apple gives a person satisfaction of 10 units and consumption of another apple gives the satisfaction of 8 units, the total satisfaction from two apples will be (10+8) = 18 units. If one more apple gives him the satisfaction of 6 units, then total satisfaction becomes (10+8+6)=24 units.

TUn = U1+U2+U3+………..+Un

Where,

TUn = Total utility from n units of a given commodity

n = number of units consumed

U1, U2, U3 ………….Un = utility from 1st, 2nd, 3rd to an nth unit of commodity.

Meaning of Marginal Utility:

Marginal Utility refers to the additional utility derived from the consumption of one more unit of a given commodity in a given time period.

As in the above example, the total utility increases from 18 to 24 units after the consumption of 3rd apple. Thus, an additional 6 units are the marginal utility-driven from the 3rd unit of apple.

MU can be calculated as

MUn = TUn – TUn-1

Where MUn = marginal utility from an nth unit

TUn = Total utility from n units

TUn-1 = Total utility from n-1 units

In simple words, MU is the change in total utility when more unit of a given commodity is consumed.

Therefore,

“MU= Change in TU/ Change in units consumed”

Basis of Difference	Total Utility	Marginal Utility
Meaning	It is the aggregate satisfaction derived from the consumption of a commodity by a consumer	It is the additional satisfaction derived from consuming an extra unit of a commodity by a consumer.
General tendency	In the beginning, it increases but at a decreasing rate.	It tends to diminish as more and more units of a commodity are consumed
Point of Satiety	The point of satiety arrives when it is maximum.	Point of satiety arrives where it is zero.
After Saturation	It tends to decrease after the point of saturation is reached.	It becomes negative after the point of saturation.
Calculation	It can be calculated as the summation of marginal utilities derived from all units of a commodity	It can be calculated as the difference between the total utilities derived from two successive units of a commodity.
Expression	TUn = U1+U2+U3+………..+Un	MUn = TUn – TUn-1

Download the chart: –

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Difference between Total Utility and Marginal Utility

Conclusion: –

Thus, Total Utility and Marginal Utility are the types of term Utility. These both are used to analyze the consumers’ preferences while purchasing in a market.

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What is difference between total utility and marginal utility?

Total utility rises as more consumption is done. Marginal utility diminishes with an increase in total utility. It suffers from diminishing returns. Marginal utility reduces with the consumption of each additional unit.

What is the difference between total utility and marginal utility quizlet?

What is the difference between total utility and marginal utility? Total utility is the total amount of satisfaction derived from consuming a certain amount of a good while marginal utility is the additional satisfaction gained from consuming an additional unit of the good.

What is the relationship between total utility and marginal utility?

The relationship between total utility and marginal utility indicates that when marginal utility decreases, total utility increases at a decreasing rate, and when total utility is at a maximum point, marginal utility is zero and total utility starts to decline if marginal utility is negative.

What is the difference between marginal utility and marginal product?

According to the Law of Diminishing Marginal Utility, the utility of an additional unit of a good is inversely related to the number of units consumed already. In turn, the marginal productivity (or marginal product) is the production gain got by a given plant when a given input is increased by one unit.