Meaning of utility :
Utility means wants of satisfying a commodity. It is derived from the consumption of the commodity. we can derive utility by cardinal measure to know consumer's consumption of good and services.
Total Utility :
Total utility refers to total satisfaction derived from the consumption of goods and services by the consumers.
For ex : 1st chocolate gives you satisfaction of 10 utils and second chocolate gives you the satisfaction of 8 utils, then TU is 10+8 = 18 utils.
Marginal Utility :
Marginal utility refers to the additional utility obtained from the consumption of one more unit of the given commodity.
MU can be calculated as : MUn = TUn - TUn-1.
Utility means wants of satisfying a commodity. It is derived from the consumption of the commodity. we can derive utility by cardinal measure to know consumer's consumption of good and services.
Total Utility :
Total utility refers to total satisfaction derived from the consumption of goods and services by the consumers.
For ex : 1st chocolate gives you satisfaction of 10 utils and second chocolate gives you the satisfaction of 8 utils, then TU is 10+8 = 18 utils.
Marginal Utility :
Marginal utility refers to the additional utility obtained from the consumption of one more unit of the given commodity.
MU can be calculated as : MUn = TUn - TUn-1.
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