Question

how is tu derived from mu
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Answer 1

Answer:

Which chapter ........

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Answer 2

When a consumer goes on to consume the units of a commodity continuously the marginal utility derived from the successive units of the commodity goes on to fall constantly while other factors are held constant.

From the above statement regarding the consumer behavior the relationship between total utility (TU) and marginal utility (MU) is deducted as under:

MU is the rate of change of TU.

When the MU decreases, TU increases at decreasing rate.

When MU becomes zero, TU is maximum. It is a saturation point.

When MU becomes negative, TU declines

The standard quadratic form of the TU function is written as follows:

TU = aQ - bQ2

and MU = dTU / dQ = a - 2bQ

Slope of MU = dMU/dQ = -2b

By taking the successive values of Q, the relationship between MU and TU is represented in the following schedule:

Quantity TU M U

1   10         10

2   18 m      8

3   24          6

4   28          4

5   30          2

6   30          0

7   28         -2

Hope helps...