Questions and Answers
What is total utility in economics?
The total satisfaction gained by the consumer from the consumption of all available units of a commodity
If a consumer obtains 8, 6, and 4 utils of utility from consuming 3 units of a particular commodity, what is the total utility?
18 utils
How is total utility mathematically represented?
$TU = \sum MU = MU_1 + MU_2 + ... + MU_n$
If a consumer obtains 10 utils from consuming the first unit and 8 utils from consuming the second unit of a particular commodity, what is the marginal utility of the second unit?
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What does marginal utility represent?
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