Total Utility is the total satisfaction obtained from all units of a particular commodity consumed over a given period of time.
Marginal Utility. It is the utility of the last unit consumed or marginal utility is the change in total utility that results from in one unit change in consumption of the commodity within given period of time.
When you buy more and more units of commodity the marginal utility begins to diminish but the total utility goes on increasing at a diminishing rate. When marginal utility comes to O or we say the point of saturation (Satisfaction) is reached, total utility at this point is maximum.
If consumption is increased further from this point, the marginal utility becomes negative and total utility begin to diminish.
The relationship between total utility & marginal utility can be explained in the table.
Schedule showing Marginal Utility and Total Utility
Up to first 4 units, the marginal utility decreases but remain positive. Total utility increases. So long as the marginal utility does not touch horizontal axis total utility increase. Marginal utility becomes 0 on 5th unite & total utility become the highest i.e. 14 unite and when marginal utility becomes negative total utility fall.
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Naeem Javid Muhammad Hassani is working as Conservator of Forests in Balochistan Forest & Wildlife Department (BFWD). He is the CEO of Tech Urdu (techurdu.net) Forestrypedia (forestrypedia.com), All Pak Notifications (allpaknotifications.com), Essayspedia, etc & their YouTube Channels). He is an Environmentalist, Blogger, YouTuber, Developer & Vlogger.