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Total Utility v/s Marginal Utility

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