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BasisTotal utilityMarginal utility
MeaningSum of utility derived from all units consumed.Addition made to total utility by consuming one more unit.
Formula\(TU = \sum MU\)\(MU_n = TU_n - TU_{n-1}\)
BehaviourIncreases at a diminishing rate, becomes maximum and then falls.Diminishes continuously, becomes zero and then negative.
RelationTU is maximum when MU is zero.When MU is negative, TU declines.
Doubtly AI · 29 Oct 2026 AI-verified · Nov 2026 Report
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