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Define total utility. How is marginal utility derived from total utility? |
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Answer» Total Utility is the sum total of utility derived from the consumption of all the units of a commodity. TU = MU1+ MU2+ MU3 = + .......... +………………+ 123 MUn or TU MU n n = ∑MUn Marginal Utility is derived from Total Utility as : MU = TUn - TU(n-1) or MU = ΔTU/ΔQ |
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