Question

MU. TU.-TU(n-1)
Explain relationship between total utility and marginal utility.
marginal utility can be explained with the help of
The relationship between total utility and
following Schedule and diagram :
No of units consumed Marginal utility Total
Utility
1
8
8
6
14
4
18
2
20
0
20
6
-2
18​

Answer 1

Answer:

There is an inverse relationship between MU and stock of the commodity i.e. as the stock of the commodity consumed increases, MU goes on diminishing. When MU is Zero, TU is the maximum and it is the point of maximum satisfaction. i.e., point of satiety. When Mu becomes negative, total utility starts diminishing.