Total & Marginal Utility

Total & Marginal Utility:

#) Total Utility: The aggregate level of satisfaction or fulfillment that a consumer receives through the consumption of a specific good or service. Each individual unit of a good or service has its own marginal utility, and the total utility is simply the sum of all the marginal utilities of the individual units.

+> Classical economic theory suggests that all consumers want to get the highest possible level of total utility for the money they spend.

#) Marginal utility: Marginal utility is an important economic concept because economists use it to determine how much of an item a consumer will buy.

+> Positive marginal utility is when the consumption of an additional item increases the total utility.

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