Question

How is TU derived from MU?

Options

• TU = ΣΜU

• TU = U₁ + U₂ + U₃ ---------- + U_N

• Both (a) and (b)

• None of these

Answer 1

Both (a) and (b)

Explanation:

Total utility is the sum of the marginal utilities from all units consumed. It can also be expressed as the sum of each unit’s utility, so both statements describe the calculation.