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what is the relationship between marginal utility and total utility?
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what is the relationship between marginal utility and total utility?
The relation between total and marginal utility is explained with the help of Table 1. So long as total utility is increasing, marginal utility is decreasing up to the 4th unit. When total utility is maximum at the 5th unit, marginal utility is zero. It is the point of satiety for the consumer
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what is the relationship between marginal utility and total utility?
Total Utility = Sum of MUs.Marginal Utility = TUn-TUn-1.MU is the rate of consumption of units.TU & MU relationship--1.MU decreases, TU increases at decreasing rate.2.TU is maximum, MU becomes Zero.
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what is the relationship between marginal utility and total utility?
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