Question

What do you mean by total utility?

Explain the following concept:

Total utility

Answer 1

Total utility is the total amount of satisfaction derived from consuming different units. As a result, we can write: 

TU_x = F(Q_x)

Answer 2

1. Total Utility refers to the total satisfaction or benefit a consumer gets from consuming a certain quantity of goods or services.
2. It increases as more units are consumed, but usually at a diminishing rate.
3. It is the sum of marginal utilities (additional satisfaction from each unit).
4. Measured in utils (a theoretical unit of satisfaction).
5. Total utility reaches a maximum when marginal utility becomes zero, and may fall if more is consumed beyond that point.