. Define total utility and marginal utility
- Total utility is the total satisfaction obtained from consuming a unit of a good.
- Total utility is the total satisfaction of wants and wishes.
- Marginal utility is the increase or decrease in total utility derived from consuming one more unit of a product.
- It focuses on the importance of additional amounts of a particular good or service.
Final answer :
- Total utility is that the consumer of all quantities of a certain commodity he would buy at every conceivable price.
Marginal Utility :
- Marginal utility is the change in total utility brought about by a small change in the quantity of a good consumed.