Differentiate between marginal utility and total utility.

Economics Marginal Utility Questions



80 Short 80 Medium 45 Long Answer Questions Question Index

Differentiate between marginal utility and total utility.

Marginal utility refers to the additional satisfaction or benefit gained from consuming one additional unit of a good or service. It measures the change in total utility resulting from consuming an additional unit.

Total utility, on the other hand, is the overall satisfaction or benefit derived from consuming a certain quantity of a good or service. It represents the sum of the marginal utilities of all units consumed up to that point.