Difference Between Total And Marginal Utility
The major dissimilarities or difference between total utility and marginal utility can be pointed out as follows:
1. Introduction
Total Utility: Benefit or satisfaction derived from the consumption of resource or product.
Marginal Utility: Benefit or satisfaction derived from the consumption of extra unit of resource or product.
2. Refers To
Total Utility: Sum total of benefit or utility gained by consuming a certain quantity or unit of product
Marginal Utility: Additional satisfaction or utility gained by consuming extra unit of product
3. Mathematical Presentation
Total Utility: Utility of first unit + utility of second unit + utility of third unit ......+ utility of n. unit
Marginal Utility: Total Utility - utility of (n-1) units.
Also Read:
Also Read:
4. Increase Or Decrease
Total Utility: Increases with each additional unit of consumption
Marginal Utility: Decreases with each additional unit of consumption
5. Maximum Point
Total Utility: It is maximum when marginal utility is zero
Marginal Utility: It is maximum when first unit is consumed.
Total Utility Vs Marginal Utility (Comparison Chart)
I hope this post is helpful to understand the difference between total utility and marginal utility and to make comparison between them.
Total Utility Vs Marginal Utility (Comparison Chart)
Basis For Difference
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Total Utility
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Marginal Utility
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Introduction
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Extra satisfaction derived by consuming extra unit or product or resource
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Refers To
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Sum total of satisfaction gained
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Additional satisfaction
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Computation
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Utility of 1st unit + utility of 2nd unit ...+ utility of n unit
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Total utility - utility of (n-1) units
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Increase/Decrease
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Increase with each additional unit
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Decrease with each additional unit
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Maximum Point
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Where marginal utility is 0
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After the consumption of first unit
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I hope this post is helpful to understand the difference between total utility and marginal utility and to make comparison between them.
