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Answer» Difference between total utility and marginal utility are: | Marginal Utility | Total Utility | | 1. The utility derived from consuming extra unit of a commodity is known as marginal utility. | Total utility is the aggregate utility that a person derives from consuming a particular product. | | 2. The marginal utility shows a tendency to decrease with every additional intake. | In the beginning the total utility increases but at a decreasing rate. | | 3. At the point of satiety marginal utility is zero. | At the point of satiety total utility is maximum. | | 4. Once the point of satiety is reached, thereafter marginal utility becomes negative. | The total utility starts falling after the point of maximum satisfaction. | | 5. Marginal utility could be stated as the difference between the total utilities of the two successive units. For instance marginal utility of fourth unit would be the total utility of fourth unit less the total utility of the third unit. | Total utility could also be sated as summation of the marginal utilities. It simply means total utility for a particular unit is the summation of the marginal utilities up to that unit. | | 6. The tendency of marginal utility is diminishing and this forms the basis for the law of diminishing marginal utility. | In case of total utility, initially the consumer gets more and more satisfaction from consumption of a particular product but beyond a certain level this satisfaction reaches at the point where it does not rise but remains constant and thereafter starts falling. |
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