The Key Difference Between Marginal Utility and Total Utility
Feature |
Marginal Utility |
Total Utility |
Definition |
The additional satisfaction or benefit gained from consuming one more unit of a good or service. |
The overall satisfaction or benefit obtained from consuming a certain quantity of a good or service. |
Measurement |
Change in total utility resulting from a one-unit increase in consumption. |
Sum of utility derived from all units consumed. |
Nature |
Incremental and specific to the next unit consumed. |
Cumulative and represents total satisfaction. |
Behavior Over Time |
Typically decreases as more units are consumed (law of diminishing marginal utility). |
Generally increases as consumption increases but at a decreasing rate. |
Purpose in Economics |
Helps explain consumer choice and demand behavior. |
Indicates the total satisfaction level of the consumer. |
Graphical Representation |
Slopes downward, showing decline in additional satisfaction per unit. |
Slopes upward but flattens as consumption increases. |
Example |
The pleasure gained from eating the 3rd slice of pizza after already eating 2 slices. |
The total pleasure from eating all 3 slices of pizza. |
Relation to Consumer Decisions |
Used to decide whether to consume additional units. |
Reflects overall happiness from total consumption. |
Marginal Utility vs Total Utility
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