Concepts of Utility

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Topics

  • Total Utility (TU)
  • Marginal Utility (MU)

Notes

Concepts of Utility :

1) Total Utility (TU) :

Total utility refers to the aggregate of utility derived by the consumer from all units of a commodity consumed. It is an aggregate of utilities from all successive units of a commodity consumed.

2) Marginal Utility (MU) :

Marginal utility refers to the additional utility  derived by a consumer from an additional unit of a commodity consumed. In other words, it is the addition made by the last unit of a commodity consumed.

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