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Distinguish between total utility and marginal utility. |
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Answer» Total utility refers to the entire amount of satisfaction obtained from consuming a given quantity of a commodity. According to Lipsey, “Total utility refers to the total satisfaction from the amount of the commodity consumed.” Marginal utility is the additional utility which results from a unit increase in consumption. According to Prof. Boulding, “The marginal utility is the utility which results from a unit increase in consumption.” |
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