Economics Marginal Utility Questions Medium
Marginal utility is calculated by taking the difference in total utility between two levels of consumption and dividing it by the change in quantity consumed. Mathematically, it can be expressed as:
Marginal Utility = (Change in Total Utility) / (Change in Quantity Consumed)
To calculate the marginal utility, one needs to determine the total utility derived from consuming a certain quantity of a good or service and then compare it with the total utility derived from consuming a slightly higher or lower quantity. The difference in total utility is divided by the change in quantity consumed to obtain the marginal utility.