Question

relation between total utility and marginal utiliyu​

Answer 1

Answer:

The relation between total and marginal utility is explained with the help of Table 1.

Relation between TU and MUSo long as total utility is increasing, marginal utility is decreasing up to the 4th unit. When total utility is maximum at the 5th unit, marginal utility is zero. It is the point of satiety for the consumer. When total utility is decreasing, marginal utility is negative (the 6th and the 7th units). These units give disutility or dissatisfaction, so it is no use having them.

To draw the curves of total utility and marginal utility, we take total utility from column (2) of Table 1. and obtain rectangles. By connecting the tops of these rectangles with a smooth line, we get the TU curve that peaks at point Q and then slowly declines. To draw the MU curve, we take marginal utility from column (3) of the table.

The MU curve is represented by the increment in total utility shown as the shaded block for each unit in the figure. When the tops of these blocks are joined by a smooth line, we obtain the MU curve. So long as the TU curve is rising, the MU curve is falling. When the former reaches the highest point Q1 the latter touches the X-axis at point С where the MU is zero. When the TU curve starts falling from Q onwards, the MU becomes negative from С onwards.

Answer 2

The relationship between total and marginal utility :-

• TU and MU both starts from same point .

• As TU increases , MU falls by consuming every additional unit of good or service .

• When TU at its maximum level , MU is Zero .

• When TU starting decline , at the same time MU tends to negative .