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what is a differences between Total utility and Marginal utility?
Answers
What is Total Utility?
Total utility is the overall satisfaction a consumer derives from the consumption of particular goods and services. Each individual unit of goods or services has a marginal utility of their own.
Total utility is the sum of marginal utilities of all such individual items.
The primary concern of a customer is to derive the largest amount of utility with the least cost incurred.
What is Marginal Utility?
Marginal utility is the concept used by economists to quantify the amount of satisfaction that is gained by consumption of additional units of a good or service. It is an important concept that is used by economists to determine how much quantity of an item a customer is willing to purchase
Difference
Total utility is the total amount of satisfaction derived from consuming a certain amount of a good while marginal utility is the additional satisfaction gained from consuming an additional unit of the good.
Total utility is the total amount of satisfaction derived from consuming a certain amount of a good while marginal utility is the additional satisfaction gained from consuming an additional unit of the good.