Distinguish between
Total Utility v/s Marginal Utility
Total Utility | Marginal Utility |
1. Total utility is the sum total of the individual utilities derived from the consumption of a single unit of goods. | 1. Marginal utility is the addition made to the total utility from every additional unit consumed. |
2. Total utility increases at a diminishing rate. | 2. Marginal utility is continuously diminishing from the beginning. |
3. At the point of satiety TU= 15 (i.e Maximum) | 3.At the point of satiety MU = O |
4. Total utility declines if consumption continues. | 4. If the consumption continues marginal utility becomes negative. (TU decrease MU negative) |
5. Total utility deter- mines value in use of a commodity. | 5. Consumption beyond the point of satiety transforms satisfaction into dissatisfaction. |
6.Total utility can be only positive | 6. Marginal utility can be positive, negative, zero. |
7. Diagram | 7. Diagram |
