Concepts of Utility

Advertisement Remove all ads

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.

If you would like to contribute notes or other learning material, please submit them using the button below.
Advertisement Remove all ads
Share
Notifications



      Forgot password?
View in app×