16. The formula to convert utility of a commodity into money terms is.
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basic total utility formula: TU = U1 + MU2 + MU3
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total utility refers to the aggregate utility, or the summation of utility, derived from the consumption of all the units of a commodity i.e. total utility is the sum of marginal utility. algebraically,
tun = mu1 + mu2 + mu3 +..............+ mun = ∑mu
4) marginal utility refers to the addition to the total utility, due to the consumption of an additional unit of a commodity. mu is derived from tu as:
mun = tun − tun − 1
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