State with reasons whether you agree or disagree : The concept of total utility and marginal utility is the same.
Q.4 (v) State with reasons whether you agree or disagree : The concept of total utility and marginal utility is the same.
1 answer
Best answer
Answer: Disagree.
- Total utility (TU) is the sum of utility derived from all the units of a commodity consumed: \(TU_n = MU_1 + MU_2 + \dots + MU_n\).
- Marginal utility (MU) is the additional utility derived from one more unit consumed: \(MU_n = TU_n - TU_{n-1}\).
- As consumption increases, TU increases at a diminishing rate while MU diminishes.
- When MU is zero, TU is maximum (point of satiety); when MU becomes negative, TU starts falling.
| Units | TU | MU |
|---|---|---|
| 1 | 10 | 10 |
| 2 | 18 | 8 |
| 3 | 24 | 6 |
| 4 | 28 | 4 |
| 5 | 28 | 0 |
| 6 | 26 | −2 |
Thus the two concepts are related but not the same.
Doubtly AI
· 28 Oct 2026
AI-verified · Oct 2026
Report
Was this answer helpful?
Thanks for the feedback.
Sign up free to save answers and ask your own doubts
Your answer
Log in or create a free account to answer this question.