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Question
Distinguish Between:
Total Utility and Marginal Utility
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Solution
| Sr. No. | Total Utility | Marginal Utility |
| 1. | Total Utility (TU) refers to the aggregate of utility derived by the consumer from all units of a commodity consumed. | Marginal Utility (MU) is the additional utility derived by the consumer on consumption of an additional unit of the commodity. |
| 2. | TUn = MU1 + MU2 + MU3 + ... + MUn TUn = Σ MUn | MUn = TUn – TU(n-1) |
| 3. | TU initially increases at diminishing rate | MU goes on diminishing continuously. |
| 4. | At the point of satiety, TU is maximum | At the point of satiety, MU is zero. |
| 5. | TU declines if consumption continues after the point of satiety. | MU becomes negative if consumption continues after the point of satiety. |
| 6. | TU is always positive. | MU can be positive, negative or zero. |
| 7. | Diagram: |
Diagram: |
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