Question

Mention the relationship between marginal utility and total utility.

Answer 1

• Total Utility:

1. If Total utility increases
2. If Total utility reaches maximum.
3. If Total utility diminishes

• Marginal Utility:

1. Marginal utility declines
2. Marginal utility reaches zero
3. Marginal utility becomes negative
   MU_n = TU_n – TU_n-1.