1.

Distinguish between Total Utility and Marginal Utility with the help of an example.

Answer»
Total UtilityMarginal Utility
1. It is the aggregate utility derived by the consumer by consuming all the units.1. It is the additional utility derived by the consumer by consuming one additional unit.
2. It represents utility of all the units consumed.2. It represents the utility of a single unit.
3. For example if a consumer consumes 4 mangoes, his total utility will be TU=U1+U2+U3+U4.3. If a consumer get 15 utils from 3 mangoes and 20 from 4 mangoes, his MU will be 20 -15=5 utils
4. The total utility does not decrease.4. It diminishes with increase in consumption of products.
5. It does not become negative.5. Marginal Utility may become negative.
6. The initial total utility is low.6. The initial Marginal utility is high.
7. It can be expressed as TUx= MUx7. It can be expressed as MUn=TUn-TUn



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