Difference between total utility and marginal utility
Answers
Answer:
Total utility is the sum total of utility derived from the consumption of all the units of a commodity. ... Marginal utility refers to additional utility obtained from the consumption of an additional unit of a commodity
Answer:
The main difference between total and marginal utility is that total utility refers to the total satisfaction received by the consumer from consuming different units of a commodity while the marginal utility, connotes the additional utility derived from the consumption of the extra unit of a commodity.
The consumer demand for a product is based on the utility derived from it. From product point of view, utility refers to the power of a commodity to satisfy consumer wants. While from consumer’s point of view, it is a psychological feeling of satisfaction or pleasure, which varies from individual to individual, derived by the consumer on consumption of the good or service. Two quantitative concepts related to the utility are total utility and marginal utility.