What is the difference between total utility and marginal utility?

a. marginal utility is subject to the law of diminishing marginal utility while total utility is not.

b. total utility represents the consumer optimum while marginal utility gives the total utility per dollar spent on the last unit.

c. marginal utility represents the consumer optimum while total utility gives the total utility per dollar spent on the last unit.

d. total utility is the total amount of satisfaction derived from consuming a certain amount of a good while marginal utility is the additional satisfaction gained from consuming an additional unit of the good?

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Business

Scott Myers

24 June, 03:41

What is the difference between total utility and marginal utility?

a. marginal utility is subject to the law of diminishing marginal utility while total utility is not.

b. total utility represents the consumer optimum while marginal utility gives the total utility per dollar spent on the last unit.

c. marginal utility represents the consumer optimum while total utility gives the total utility per dollar spent on the last unit.

d. total utility is the total amount of satisfaction derived from consuming a certain amount of a good while marginal utility is the additional satisfaction gained from consuming an additional unit of the good?

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Evangeline Chandler · Answer 1

The main difference between total utility and marginal utility is that total utility refers to the total amount of satisfaction the consumer receives from a good. Marginal utility is the added satisfaction they receive from consuming an idiot unit of the same good.

We all buy something and hope to feel satisfied from purchasing that good, that is essentially what total and marginal utility are measuring. This allows economists and businesses to track how satisfied consumers are from consumption of a product.