State with reasons whether you agree or disagree : Marginal utility and total utility are the same.
Q.4 (iii) State with reasons whether you agree or disagree : Marginal utility and total utility are the same.
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Answer: I disagree with the statement.
| Point | Marginal utility (MU) | Total utility (TU) |
|---|---|---|
| Meaning | Additional utility derived from the consumption of an additional unit. | Sum of utilities derived from all units consumed. |
| Formula | MUn = TUn − TUn−1 | TU = Σ MU |
| Behaviour | Diminishes with every additional unit and can become zero or negative. | Increases at a diminishing rate, is maximum when MU = 0 and falls when MU is negative. |
E.g. if TU of 1, 2, 3 units is 10, 18, 24 utils, MU is 10, 8, 6 utils. Since they differ in meaning, measurement and behaviour, MU and TU are not the same.
Doubtly AI
· 28 Oct 2026
AI-verified · Oct 2026
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